Bouncing Balls Pivot Theorem and Retrace Play

[Tavnaz]

Hi,
This thread has been started as an answer to Mr Biswajit and all the other who trade the Market.
Now we all know that Pivot Zones exist and there are floor pivots and Historical Pivots,the floor pivots are used by the pit traders in the stock market and all.
Now i am telling you this gem of the thing which could be used in any market all in return i ask is you post consistently here helping other posting daily pivot charts,If enthusiasm is there i might as well post the Pivot theorem Completley.
Floor Pivot Formula's:
R3= 2(P-YL)+YH
R2= P-YL+YH
R1= 2P-YL
P= (YH+YL+YC)/3
S1= 2P-YH
S2= P-YH+YL
S3= 2(P-YH)+YL

YH,YL,YC are the respecitive closes of the previous period.
A 4 hourly pivot line will use 4 hourly data and daily pivot line will use daily.

The Historical Pivot:
They are drawn from,historical high's and lows and flips taking place on the Charts.
A Flip on 4 hourly is less valid then Daily and on Daily is less important then weekly

Look at the Charts below to see pivot zones in action.
Now i personally call it bouncing ball Pivot theorem,just using this and 4 patterns from lazy boy you could predict the next move of the market without any hassle.
These Patterns are:
Tweezer Top
Tweezer Bottom
Bullish Takeover
Bearish Takeover

While looking at the chart you will see the price bounce of these levels so you don't need anything but these to predict the next move in the market.

Now i again say if you are just going to read it and not post here i won't continue here,it waste's my time,because if you post the charts it help to see what all traders are thinking.
My next post will come only after i see charts from your side and active participation.
Remember i said these are perfect tools,can be used in any market the man who taught me these has taught many even stock traders and futures etc and they are successful.
The Chart:

 

[Tavnaz]

Hey There guys,
Looks like i have started a loose start,now see my new chart if this ticks in your head.
Every single move in Eur/Usd and all other charts was predictable with this you would have made easy 1500 pips in Eur/Usd alone in 1 Months time.
People wake up,ask questions man,without curiosity you can't gain anything.
Post your charts on the same and let's see what you've got.

I'm telling you 1500 pips i this market that too sure short is not a piece of cake guys.
ie 1500 $ or straight above 65000 Rs/Month from one chart.
Or its 15000 $ on a standard lot.
I'm not posting it because i have something to gain,but if we start a thread on Traderji where everyone posts his charts and asks opinions this market will be like snatching a candy from a baby.:roflyou get what i mean)

Don't feel afraid just post it man,bring the charts,ask some questions.

 

[Edward]

Hey Tavnaz,

Congrats for starting a new thread...
Guys, ask him questions if you don't undestand.... he is ready to help, but he needs an assurance that his help is needed and appreciated...

Probably he is the first guys who is taking a holistic approach in trading... that is bringing indicators and trying to infer the price actions with them .. or the reverse... any which way he is trying a balancing act here.. so go ahead and post your queestions and your discoveries...

Trading is learning and learning ceaselessly....

Hey There guys,
Looks like i have started a loose start,now see my new chart if this ticks in your head.
Every single move in Eur/Usd and all other charts was predictable with this you would have made easy 1500 pips in Eur/Usd alone in 1 Months time.
People wake up,ask questions man,without curiosity you can't gain anything.
Post your charts on the same and let's see what you've got.

I'm telling you 1500 pips i this market that too sure short is not a piece of cake guys.
ie 1500 $ or straight above 65000 Rs/Month from one chart.
Or its 15000 $ on a standard lot.
I'm not posting it because i have something to gain,but if we start a thread on Traderji where everyone posts his charts and asks opinions this market will be like snatching a candy from a baby.:roflyou get what i mean)

Don't feel afraid just post it man,bring the charts,ask some questions.

 

[Tavnaz]

Todays Cad/Chf trade 4 hourly.

Hi Guys,
Thanks for the appreciation Edward Ji.
But i'm still waiting for response here,looks like all of them interested in someone else laboring,while they watch.
Here is the chart of Cad/Chf same bullish psychology here,tok the trade it's on 4 hourly but good one.
Once again guys,i know you are busy people but atleast post one chart very single day,i'm getting bored out here.
Now the bull bar was headed towards 9700 round number so no problem of pivot in-between.
The Same place i believe there was a lazy boy crossover
See the chart:

 

[Raghavacc]

Re: Todays Cad/Chf trade 4 hourly.

Hi Guys,
But i'm still waiting for response here,looks like all of them interested in someone else laboring,while they watch.
:

I totally disagree with you Tanvaz,

All good things start as a seed without notice and then they grow as gigantic tree. How can you interpret that no one is interested?. Trust me this thread will be one like Edward Bro's thread in coming days. Your concept adds one more golden feather to "Lazy Boy". Go on .. Participation will come

Regards
Raghav

 

[Tavnaz]

Hi Guys,
Forgive my impatience, my dear Raghav.
So let me post yet another chart here,of Eur/Jpy tweezer top occured on this day.
The Same Chart with Lazyboy had no crossover but momentum was there in ADX.
I am thinking of Posting Pinnochio Bars here also.
Let's see when they happen in real time.

Stochastic Oscillator shows Overbought at the time.

 

[Tavnaz]

Hi Guys,
The Same Eur/Jpy trade failed at lazy boy crossover,the reason the the price was headed at the Pivot level above.
Why don't you post your charts for the lazyboy trades you do,i will post mine,i have more then 70 patterns you can user in this market,why don't you begin posting carts and we discuss them.

 

[Tavnaz]

Hi Guys,
Now it's time to begin with the major part of this thread.
You all can see that pivot zones can be drawn,but do you see that the essence is not the Patterns forming in them but the play of price in them.
It's like a ball being thrown from one end striking the other:
1. Either it will cross the Zone
2. Or Will Bounce Back falling below to the next Zone.
Now i could say this is the only system you need to trade,Buy Support Sell resistance.

But it is not that easy because if it would be,everyone would be rich,because it takes a lot of screen-time to learn and implement a system,so all of you who think they read the patterns here and can go out and trade with then they are wrong,you will fail badly.

Reason you will take touch trades,then i will be the scape goat here for presenting these patterns.
Let me tell you all Reversal Patterns other then Double Tops and bottoms have 50 % success rate but still these patterns win because of inbuilt filters in Pivot Zones and Pivot theorem.

When Price breaks resistance it will become support but not until it retests that level.
Look at the chart of Gbp/Aud and see how price bounces between them,like a crazy ball.
But sometimes when you see spike above you say hey its broken that level but it's nothing more then Exhaustion the bars for which i will tell later.

So for now open up a weekly chart draw these levels and find the patterns i told,post here you results,for demo trades,or questions,we will come up with answers.
All the above said you would have seen you don't need indicators,a plain chart is enough.

Daily Chart tweezer trade:

 

[Tavnaz]

Fibonacci Clusters Way to gauge Major Levels.

For those of you who can't gauge major levels,You can use Fibonacci cluster to gauge the strength of the major levels.
To draw them,just take out fibonacci retracement tools.
And draw multiple fibonacci retracements from one swing high to swing low and other swing high to other swing low moving along the direction of the trade see chart for illustration.
Post your charts here after you do that,practice drawing them.

Now after drawing the two or more clusters,without hassle,if there is aniother swing high swing low which is major and you want to draw that too just plot rectangles at the overlapping regions and remove previous fibonacci.

Draw remaining fibonacci's if any after removing previous fibonacci's,and replacing them with rectangles.

Then again people,i am asking nothing in return but active participation,but no one seems to understand that,i think for now i have provided enough and will post here only after i see some other posting here.
See you guys.

 

[Tavnaz]

Golden Rules of Price Action,Pivot theorem rules

Golden Rules of Price Action:
1. Never be Desperate,because if you miss one opportunity there is always another around the block
2. Never Break Your Rules.
3. Always plan the Trade,and Trade the Plan,because if it's ineffective you will know it is cauz you tried if you didn't you will commit the wrong doing again.
4. Price action setup must be searched along Pivot Zones Not Otherwise.
5. Never catch a falling knife,i don't give a damn if breakout took place you were not in there you get in the path of that blow while it has begun you are dead guy.
6. Price when you buy is never too cheap and when you sell is never too high,let your trade run get it's full potential,wait for right moment to buy because there is always a sucker who wants the cheapest price.

What Does Bouncing Balls Pivot Theorem Say:
Here are the rules
1. Draw Pivot Zones
2. See if you can feel the price's dance in the Zones.
3. Wait for the Price to hit the wall,form a tweezer top,pinbar,tweezer bottom,Bullish Engulfing etc and then be the first to get on the reverse move.
4. Always place your stop where market say's it must be not according to your appetite,so if i have a 38.2 Fib breach price is headed for 50 then plce your stop behind 38.2.
5. Never exit when your mind say it's enough,but when market say's it will be excess or it's less.
6. Backtest all patterns before using them.
The Postulates, i will explain in coming posts.