Trade 19 Pivot Point Trading

What are Pivot Points?

Pivot points  are points, or price levels that seem to attract price action, and are used by many traders usually daily. This is monthly, as we trade….monthly

                                   S3             S2             S1      Central Pivot     R1             R2               R3

The calculation for a pivot point is shown below:
Pivot point (PP) = (High + Low + Close) / 3.
First resistance (R1) = (2 x PP) – Low.
First support (S1) = (2 x PP) – High.
Second resistance (R2) = PP + (High – Low)
Second support (S2) = PP – (High – Low)
Third resistance (R3) = High + 2(PP – Low)

 See the link   https://uk.investing.com/technical/indices-pivot-points

I used to calculate these manually every day when trading futures and options  full time. Yes, I made money, but I don’t like futures. I don’t like 08:00am.

So,  What IS Trade 19?

Typically we’d expect S2 and R2 to act as support and resistance-giving us a low of 6929 and a high of 7439.

7400 Call is 11, 6900 Put is 10.5. Sell them!  A boring strangle, but………. we will track this and this time, make dynamic adjustments. Per strangle this takes in 21.5 or £215 and the margin (cash in the account)  is likely to be around £1200. So you could make around 16% ROCE. In 3 weeks

It’s a Bit Boring Isn’t It?

Making money is never boring, but this may not be a great trade as it is based solely on pivot points, or –  a wing and prayer as some might say. I have silenced quite a few naysayers and Chicken Littles with the dullest, dumbest trades in the past. Let’s also see if we can repair any damage.

Things are about to get amazing here, we are going to do something nobody has ever done before, in real time with real prices for free. All you need do is check in once day as you would if you were trading real money