Lecture on Trading with Floor Trader Pivot Points

Introduction

• Discussion on a powerful technical indicator used by traders: Floor Trader Pivot Points
• Historical context of trading without modern technology in the 1980s
• Explanation of the trading jacket worn in the video, reminiscent of past trading days

Pivot Points Explained

• Definition: Horizontal lines on a chart representing support and resistance.
• Calculation Basis: Derived from the last candle's data (high, low, close).
• Focus: Floor Trader Pivot Points are highlighted as accurate and easy to calculate.
• Mention of alternative pivot point calculations: Camarilla, Tom De Mark's, Woody, Fibonacci.

Calculation of Pivot Points

• Main Pivot Point Calculation: Average of the high, low, and close of the last candle.
  • Example: High = 125.10, Close = 124.90, Low = 124.60
  • Pivot = (High + Close + Low) / 3
• Range Calculation: Difference between the high and low of the candle.
  • Example: Range = High - Low = 50 pips

Levels of Support and Resistance

• Support Levels Calculation:
  • Support 1: 2 * Pivot - High
  • Support 2: Pivot - Range
  • Support 3: Low - 2 * (High - Pivot)
• Resistance Levels Calculation:
  • Resistance 1: 2 * Pivot - Low
  • Resistance 2: Pivot + Range
  • Resistance 3: High + Pivot - Low

Uses of Pivot Points

• Trading Strategy Integration: Highly recommended for backtesting.
• Applications:
  • Take profit targets
  • Breakout entries
  • Counter Trend and Reversal entries
  • Stop loss placement
  • Filtering out low risk/reward trades

Practical Application

• Examples on Charts:
  • Entry at pivot points, scaling out at R1, R2, R3
  • Countertrend and reversals at respected levels (R1, R2, R3)
  • Breakout entry techniques
  • Stop placement using defined pivot points

Tools and Platforms

• Trading Platforms: Indicators available on platforms like MT4 and TradingView.
• Indicator Setup: How to load pivot point indicators on TradingView.

Final Thoughts

• Simplicity in Trading: Emphasis on simple indicators often being the most effective.
• Additional Resources: Encouragement to visit thecitytraders.com for educational resources, community support, and funding solutions.

Call to Action

• Engagement: Encouragement to subscribe and follow on social media.
• Further Learning: Invitation to explore additional resources provided by the presenter.

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These notes provide a summary of the key points discussed in the lecture on Floor Trader Pivot Points, their calculation, application, and benefits in trading strategies.