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Pivot Boss Points

The document discusses trading strategies using pivot points. It describes how the initial balance, defined as the price range in the first hour of trading, provides an important reference point for traders. The initial balance high and low are used to facilitate trading between buyers and sellers. A narrow initial balance is more likely to break out of its range than a wide one, indicating the potential for a move toward new values.

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avinash gowda
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220 views3 pages

Pivot Boss Points

The document discusses trading strategies using pivot points. It describes how the initial balance, defined as the price range in the first hour of trading, provides an important reference point for traders. The initial balance high and low are used to facilitate trading between buyers and sellers. A narrow initial balance is more likely to break out of its range than a wide one, indicating the potential for a move toward new values.

Uploaded by

avinash gowda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Trading strategies by pivot boss reference

1. The initial balance is traditionally defined as the price range of the


first hour of the day, which is extremely important to professionals
on the floors of the exchanges.
2. They use the initial balance high (IBH) and the initial balance low
(IBL) as important points of reference in order to facilitate trade
between buyers and sellers.
3. If the initial balance is too narrow, price will break free from the
range and auction toward new value, creating range extension,
which is any movement outside the initial balance.

4. The initial balance is the base for any day's trading and is extremely
important to the Double-Distribution Trend Day.

5. A narrow initial balance is easily broken, while a wide initial balance


is harder to break.
6. The fact that the initial balance is narrow on this type of day
indicates that there is a good possibility of a breakout from the initial
range, indicating that you will likely see a move toward new value.
EXTREME REVERSAL SETUP
1. The first bar of the pattern is about two times larger than the average
size of the candles in the lookback period.
2. The body of the first bar of the pattern should encompass more than
50 percent of the bar's total range, but usually not more than 85
percent.

3. The second bar of the pattern opposes the first. If the first bar of the
pattern is bullish (C > 0), then the second bar must be bearish (C <
0). If the first bar is bearish (C < 0), then the second bar must be
bullish (C > 0).
OUTSIDE REVERSAL SETUP
1. The engulfing bar of a bullish outside reversal setup has a low that is
below the prior bar's low (L < L[l]) and a close that is above the prior
bar's high (C > H[l]).
2. The engulfing bar of a bearish outside reversal setup has a high that
is above the prior bar's high (H > H[l]) and a close that is below the
prior bar's low (C < L[l]).

3. The engulfing bar is usually 5 to 25 percent larger than the size of the
average bar in the lookback period

Five-minute chart of the Mini-Sized Dow futures contract

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