Everybody knows the best book on technically motivated directional trading (or if not, get your copy today*.) And everybody knows, or should know, pages 15 to 17 of this book where the author reviews the concept of pivots. Now, let’s be careful here, when we say pivots, we mean not some magical, mystical gimmick calculations, but the actual building blocks of market structure. Imagine a herd of elephants on the beach: where they turn, who knows. But when they turn, they will surely leave a mark in the sand. Now, as life goes on, some of those turning points (called pivots in trading) will remain rather insignificant (we’ll call them P1s), some others will prove to be major turning points (called P3s). (Note that every turning point starts its life as a P1. Only with time, and with subsequent pivots behind us, will we know how significant a pivot (a turning point) was. (Isn’t it funny, just like in life…)

Make sure you nail these concepts by diving into pages 15 to 17 of The Art and Science of Technical Analysis by trading legend Adam Grimes (aka AHG).

Now, since monitoring the evolution of pivots is somewhat attention-intensive, we at Remek! have decided to automate this market structure identification process in the form of an NT8 indicator, we call Remek! Pivots. Today Remek! Pivots is part of The Remek! Suite v4.21, which in turn is the latest release of our trading powerhouse, the trading environment all serious traders should have on their desks.

Want to see The Remek! Pivots in action? Check out this 1min ES chart below, and see how each pivot starts its life as an insignificant P1, how some will get promoted into a more significant P2, while a few will, with time and many pivots after them, turn out to become major inflections we’ll call P3s, or third-order pivots.

Study market structure, understand price action, the two foundational concepts of successful technically motivated directional trading!

For educational purposes only. Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Further reading

*Remek! Trading Systems is not affiliated with AHG, nor do we benefit from Amazon links. We simply like this book.

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