Re: Pivots, Posts, Sensibility, and.... Trading.

[Harley Meyer <meyer@xxxxxxxxxxx>]

I guess this is a slow step in the right direction.

But before I begin, I must say that your question about who has a
successfull trading strategy with pivots is pretty shallow. You know as
well as I do part of the journey is self discovery of trading
techniques. There is nothing wrong with asking for help along the way.

Personally I am knew to pivots. So for me to learn about different
pivots is of interest. Now I have a degree in mathematics. So when I sit
down to study something, I try to learn why it does what it does. So to
a non-quant-jock, one might think it is academic. To a quant-jock it
might be the status quo.

I know that many who use TA have know idea why it works, but that it
works or it doesn't. But if you know why it works, you can begin to
think for yourself when confronted with new TA problems.
So it is not the point that I use the red pivot or the blue pivot. But
that I know how all the pivots work. So your notion of a 1 and 14 chance
doesn't pertain here.

[Now I will ignore the other assumptions, cause they are ASS-Umptions
and post something that I found interesting.]

With the Larry Williams pivots/resistance/support you can re-write the
formulas to get the following results.

R1 = 4/3H - 2/3L + 1/3C
R2 = 2/3C + 2/3H - 1/3L
S1 = 2/3C + 2/3L -1/3H
S2 = 4/3L - 2/3H + 1/3C

So if we look at the fractions we see that they are approx. Fib numbers
for retracements. How does the retracement effect the H, L, or C? What
was he (Larry) thinking when he put this formula together? So it makes
for an interesting study. Now I haven't gone any further than this since
I am just getting started on this pivots problems. But I thought I would
post this incase anyone wanted to add their insights as well.

Now a couple of things that I will try todo is re-write the formulas to
see if there are any other types of patterns that are present. And then
procceed with further study of these formulas.

This also begins to give me information that can be used to make
modifications to the formulas for improvements.

Now I do trade. I have been at this a little over a year. After a little
over a year I am very close to break even ($300 shy). Which is good from
what I understand. After a long break from trading (3 to 4 months), a
time spent for LEARNING, I started up again. In the last 30 days I have
between a 17% to 20% gain after commissions. I trade securities. I have
very few losing trades. I tend to keep it that way.

I also belong to the Metatock email list and they know everything I do
in terms of trading. As time goes you will also learn what I am doing.

Harley

P.S. Thank you Pete for the 5 meg info. I will have to make sure I send
them in smaller pieces. Just kidding. I originally brought that up so
that those who were so inclined to show their "internet rage", would
realize that I wasn't going to tolerate it. And it has worked or sanity
has provailed. Haven't had to send a thing.