How To Trade Nifty Future Using Pivot Point Trading System (Part-IV)

We already now know what are Pivot Points. We already know the basics of how to trade them. Now of utmost importance to know, daily pivot point values tend to be touched or traded through roughly 75% of the time. In other words, seven out of every ten sessions for any liquid market will see the daily pivot point come into play at some point during live trading.

Isn’t that amazing! To know that a certain spot on most any chart will be touched more often than not can be a powerful tool. Unfortunately, unless one knows what to do with that information it is worthless at best or harmful at worst. Believe me, more traders LOSE money with this knowledge than actually make money. Some of the worst trading sessions touch their pivot points several times (sideways choppy session) while some of the best trading sessions miss touching the daily pivot at all (gap & go trend sessions).

In general, a market trading above its pivot point value is acting bullish while a market trading below its pivot point is bearish. That's the most general rule for using these price measures, and it holds true most of the times. Fact is, the same trend filter applies to all charts and trading timeframes: intraday charts or even daily and weekly charts.

Pivot point values are not exclusive to day trading at all. We can use them in swing trades and even position trades for long-term stock holds in DP accounts. Depending on our time horizon of trading chart, the applicable pivot value works there too.

Using daily charts for swing trades in any liquid market would mean we want to keep track of the weekly and the monthly pivot points. That much is easy: once a week we calculate the previous week's price values for a weekly pivot point. The beginning of each month we calculate previous month's price action for monthly pivot points. Simple as that!

Nifty future important levels for Monday, 31st August:
R3 - 4891, R2 - 4822, R1 - 4780, Pivot Point - 4712, S1 - 4669, S2 - 4601, S3 - 4559.

Nifty Future important levels for next week:
R3 - 4971, R2 - 4862, R1 - 4800, Pivot Point - 4692, S1 - 4629, S2 - 4521, S3 - 4458.

Special Note - I conduct an one day web-workshop held on every Saturdays on "TRADING FOR A LIVING" where I discuss some of the high probability setups for intraday or swing trading in Index futures or stocks. For registration and enquiry about the workshop, call 9432883838 or mail me at stockmaniacs@ymail.com.