Finally here to do that small explanation on Pivot Extensions how i use them and how to get them onto your chart
The Basics about Pivots and how I use them
First Off what is a pivot and how do you calculate them
Calculations Pivot P = (H + L + C) / 3.
Support and Resistance
R1 = P + (P − L) = 2×P − L
S1 = P − (H − P) = 2×P — H
R2 = P + (H − L)
S2 = P − (H − L)
So the Pivot calculated adds the Close to the calculation therefore weights the close which shows momentum and gives a greater bearing on the close position rather than the midpoint between high and low
In a Trending Market the Pivots keep opening higher or lower than the previous Pivot
For this Lesson i will be using Gold as an example
It is very clear to see the momentum and which market you are trading in when you have the pivots on
1st question how do you put the pivots on very simple see below
I use them as standard if you want a more in depth Video on this check out my Youtube here https://youtu.be/RmG20FNibrs
The most essential thing to remember is when the Pivots open Lower or higher you know that we are in a trending Market and will be looking for Shorts in a bear market and Longs in a Bull market
The Other thing to look out for are areas where we range and the market pauses, This is where i start looking for trend reversals.
Please notice i used the daily Chart on Gold in the example this is where i establish trend
I would zoom into Lower TFs to get entries which complement the trend using areas where price stalls and we start going sideways. These areas of consolidation normally lead to breakdowns in bear markets (Continuation) or Break Ups in a bull market (Continuation)
I would only consider a trend reversal on the Chart where i established trend so in our example where we have the Pivots opening compressed with one another and kinda sideways for a while i start looking out for a complete trend reversal
PIVOT EXTENSIONS
How do i get the Pivot extensions and how are they useful
Well pretty basic I extend the pivots out all the way across the chart
like below
The Pivot extensions drawn from the bear market become areas of interest and potential targets as well as SR Flip areas.
You can also use these areas to place stops as well
Hope this was useful if enough of you share this etc i will deem it worth while to make a video
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