IWM Trading for May 16, 2010

[Billy]

John,

I will soon start a multi-pivots methodology tutorial series that will help novices starting from scratch. I plan to do one per weekend.

The formulas for calculating pivots are as follows:
Resistance 3 = High + 2*(Pivot - Low)
Resistance 2 = Pivot + (R1 - S1)
Resistance 1 = 2 * Pivot - Low
Pivot Point = ( High + Close + Low )/3
Support 1 = 2 * Pivot - High
Support 2 = Pivot - (R1 - S1)
Support 3 = Low - 2*(High - Pivot)

They are the same for all timeframes.
W= Weekly
M= Monthly,
Q = Quarterly,
S= Semester or Half-Yearly
Y = Yearly

Billy

[johnboy70]

John,

I will soon start a multi-pivots methodology tutorial series that will help novices starting from scratch. I plan to do one per weekend.

The formulas for calculating pivots are as follows:
Resistance 3 = High + 2*(Pivot - Low)
Resistance 2 = Pivot + (R1 - S1)
Resistance 1 = 2 * Pivot - Low
Pivot Point = ( High + Close + Low )/3
Support 1 = 2 * Pivot - High
Support 2 = Pivot - (R1 - S1)
Support 3 = Low - 2*(High - Pivot)

They are the same for all timeframes.
W= Weekly
M= Monthly,
Q = Quarterly,
S= Semester or Half-Yearly
Y = Yearly

Billy

Billy, Thanks John

[nickola.pazderic]

Hello,

I'm new. This is my first post here or elsewhere in a financial blog for that matter.

I appreciate this new format very much. It makes it very easy to find my bearings. Thanks, thanks.

My point: look at either the SPY or IWM charts. One can draw a line or even a small channel from Feb 21/22 to May 17/18 and discover that, in essence, the market has not moved at all, minus some volatility.

I have played a simple and stupid game with this market: I choose a back month put; buy it when its cheap, sell a day or two later for a profit. go flat and wait for the market to return to me, and try it again. I got a good price today, as you can imagine.

All market indicators that I follow, including this one, say the market is in a sell mode. I have a load of short ETFs, including TZA. And I'm betting that the down trend line from May 2 holds. The next move must break "the line" from Feb 2. If not that, then all lines converge during the last week of May and contrary to American evangelicals who claim the world will end this Sunday, the market will disappear and there will be no June. (Insert smily face)

Ok-- waiting some reply, gratefully yours,

Nick in Seattle.

[Charl]

Hi Billy,

I'm in !!!!

Glad you can find the time to teach !

What format will you use to conduct the training, and what time zone?


Regrds
Charl

John,

I will soon start a multi-pivots methodology tutorial series that will help novices starting from scratch. I plan to do one per weekend.

The formulas for calculating pivots are as follows:
Resistance 3 = High + 2*(Pivot - Low)
Resistance 2 = Pivot + (R1 - S1)
Resistance 1 = 2 * Pivot - Low
Pivot Point = ( High + Close + Low )/3
Support 1 = 2 * Pivot - High
Support 2 = Pivot - (R1 - S1)
Support 3 = Low - 2*(High - Pivot)

They are the same for all timeframes.
W= Weekly
M= Monthly,
Q = Quarterly,
S= Semester or Half-Yearly
Y = Yearly

Billy

[Billy]

Hi Billy,

I'm in !!!!

Glad you can find the time to teach !

What format will you use to conduct the training, and what time zone?


Regrds
Charl

Charl I hope I won't disappoint you if it is simply a word document or powerpoint format!
Billy

[asomani]

Billy, share as you see best.

I think most or all of us are appreciative of whatever knowledge you're willing to impart, regardless of how you do it. I will personally be happy to take it anyway I can get it.

Thank you.

[Charl]

Charl I hope I won't disappoint you if it is simply a word document or powerpoint format!
Billy

Billy,

I'll study it in anyway format you choose to share.

Thanks

Charl