20200123
Short 1 NQ 9167.5, -2.25
Short 2 NQ 9174.00, 9174.00, +3.0, +10..25
Long 2 RTY 1667.3, 1667.3, +1.0, -0.9
Long 1 RTY 1665.0, +4.0
Short 1 NQ 9180.0, +10.5
Total NQ +21.5
Total RTY +4.1
Pivot / Exhaustion is a completely different method of looking at the market and creating a price level array. It's quite different than traditional methods of identifying support / resistance. Once you get use to seeing how the market behaves through the indicators that render those exhaustion plots on your screen, a whole new set of opportunities appear for you on any given trading day that you would have never considered before. ....if only you had the fortitude to take them. But everyday the crowd reminds you of their tried and true axioms never to consider taking such trades.. That such methods of exploiting exhaustion are more dangerous than the trade entries of pullbacks, that such trades are counter-trend, and therefore betray the principal of only trading WITH the trend. ..and that, furthermore, taking such trades will betray the fraternity of agreement you are supposed to rely on from fellow traders who are there to support you intellectually and emotionally...into the same losing trades they are taking...where you belong... and will no doubt reside... as long as you hang out with this 'crowd' of well wishers at their support / resistance bar rails.
With such firm adherence to such group-think, many find it inconceivable that price fills at extremes can be acquired with such consistency. In fact, they think such fills impossible, despite the fact that their own charts usually show huge concentrations of volume at precisely these bars that appear in exhaustion zones.
"Someone must be capturing those pivot swings that constitute the major turn trends of the intraday swings, but who?", I once asked, standing outside the S&P pit in the early 1980's with one of my mentors, a former Swiss Franc trader who was trying to teach me the ropes.
Using the fractal algorithm Serial Sequent, the line plots of the Pivot/Exhaustion Grid, and a short term momentum indicator that identifies the zones of price climax in the volatile action of 1st frame (without benefit of fresh, relative benchmarks), order entries can be established in any contract using one or both of the following two methods: First, Limit orders that 'lead' price before it reaches fresh and final exhaustion spikes, placed on or next to whole numbers of the stock index contract in question; and second, trailing Stop-entry orders that depend for their fills on reversal of such price climax rather than breakout-continuance.
More specifically, these types of entry orders simply await patiently before being placed for the relevant Sequent of the fractal series to finally appear while the momentum indicator signals crescendo, and price pokes THROUGH--not just to--a price level of the Exhaustion Grid that otherwise was supposed to have held, that the trend in question remain still a pullback. In glorious irony, the signal to fade actually comes at the point where tradition trend signals flash a warning of trend continuance.
That's right. You await your entry until the fraternal crowd who demands your allegiance to their trend rules of do's and don't's sees signs that the action depicted confirms their assumptions, and then you fade them--all alone, defiant of their collectivist membership, and hence force, their friendship, banking their hatred like a deposit slip at your local bank.
"Hey, you're not supposed to be doing that. No one gets those fills. We don't trade that way. You can't stay in here and do that... Now we don't like you." ...and later, given the chance, they'll post bad reviews of your book, even while publishing your methods. ....that's how bad it is when you work outside 'the crowd'. I just have to smile when I read these things about my work by such people. ..and I say to myself "and I bet he voted for the wrong Party, too."
One final comment to those just too cemented to be separated from their 'Traders' Ten Things You Should Never Do' litany. ...and this in language fit for the misconception of their current rules: The first trend climax of the day IS a pullback.
