Day Trading Strategies

day trading strategies

I created the video below entitled: “Day Trading Strategies – Invisible Support/Resistance” in which I discuss Floor Trader Pivots, and especially the levels that most people don’t use, which is the “mid pivots.” This is used by people who use day trading strategies for a living, but not by amateurs.

Your day trading software may or may not be able to calculate them automatically, but later in this post I’ll share with you several websites that provide free floor trader pivot calculators.

In the video I mention that I would share the formula for floor trader pivots before the video was finished … and then I promptly forgot!

Well, needless to say, I received many emails and video comments asking for the formula (along with any other day trading rules or techniques I had), so I’ve replied to those people but also thought it only fair to post the formula here along with the original video.

First, here’s the video, and then below the video you’ll find the formula (promise I won’t forget to include it this time!).


Okay, and here’s the floor trader pivot formula I use …

First, let me be clear that there are several formulas that various traders use. The one I use is very standard and probably used by more traders than any of the newer formulas (which is why I use it and why it works).

Here it is:

R3 = PP + 2 * (current High – current Low)
R2 = PP + (current High – current Low)
R1 = 2 * PP – current Low
PP = (current High + current Low + current Close) / 3
S1 = 2 * PP – current High
S2 = PP – (current High – current Low)
S3 = PP – 2 * (current High – current Low)

There are also web sites that will save you doing the math by providing you with a pivot point calculator. You just have to enter the previous day’s high, low and close for the market you are trading. Here are a few of them:

As a bit of a side note, I personally like to use the “settlement” price instead of the “close,” but it doesn’t normally make a huge amount of difference. It’s just that the settlement is the official number for the “close” which is determined after hours and all trades are accounted for. You can get the settlement number from the exchange’s website.

Enjoy using these day trading strategies that work. Not everything people teach you does, but this will definitely help you.

Oh, and LEAVE A COMMENT BELOW letting me know how you liked this video and what you’d like me to cover in the future.

 

Here’s one of my favorite day trading tips that isn’t known by most day traders:

Most of the ways you’ve been taught to read volume, were designed to work on daily, weekly or monthly charts and DO NOT WORK ON INTRADAY CHARTS!

So if you’re a day trader, and you’ve been using the typical volume patterns taught in most books and courses, guess what? … they won’t work on intraday charts for day trading!

You think you have your volume patterns learned … and then wonder why they don’t work with your day trading strategies.

Why?

The reason is because intraday charts have a “Volume Metapattern” that must be considered and that overrides the typical volume strategies taught in most books and courses.

Watch the brief video below for more details …

Then leave a comment below on how you liked the video and any questions you may have.

 

 

Welcome to part 3 of my continuing series: “Stock Market Trading For Beginners.”

I’ve received quite a few requests for more ‘beginner level” training. Therefore I’m working on a series of videos entitled “Stock Market Trading for Beginners.” The first two videos can be seen below.

Even though the title indicates that this is for the stock market, most of what’s in these videos also applies to Forex and futures traders as well.

Watch the videos in order because one builds on the information in the previous ones.

Oh, and LEAVE A COMMENT BELOW letting me know how you liked this video and what you’d like me to cover in the future.

 

Welcome to part 2 of “Stock Market Trading For Beginners.”

As mentioned in the previous post, I’ve received a lot of requests for more ‘beginner level” training.

Therefore I’m creating a series of videos entitled “Stock Market Trading for Beginners.” The first video can be seen in the post below and the second video is revealed today.

Even though the title indicates that this is for the stock market, most of what’s in these videos also applies to Forex and futures traders as well.

Watch the videos in order because one builds on the information in the previous ones.

Oh, and LEAVE A COMMENT BELOW letting me know how you liked this video and what you’d like me to cover in the future.