Best Day Trading Strategies
I created the video below entitled: “Best Day Trading Strategies – Invisible Support/Resistance” in which I discuss Floor Trader Pivots. Especially notice 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. 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!
I received many emails and video comments asking for the formula (along with any other day trading rules or techniques I had). I’ve replied to those people but also thought it only fair to post the formula here along with the original video.
Enjoy the video. Below the video you’ll find the formula (promise I won’t forget to include it this time!).
Here’s the floor trader pivot formula I use …
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).
FLOOR TRADING PIVOTS FORMULA
Here it is:
R3 = PP + 2 * (current High â€“ current Low)
R2 = PP + (current High â€“ current Low)
R1 = 2 * PP â€“ current Low
PP = (current High + current Low + current Close) / 3
S1 = 2 * PP â€“ current High
S2 = PP – (current High â€“ current Low)
S3 = PP – 2 * (current High â€“ 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:
DON’T USE THE “CLOSE” IN THE FORMULA
I 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 best day trading strategies that work.
LEAVE A COMMENT BELOW letting me know how you liked this video and what you’d like me to cover in the future.