hi sanjay,
ive read the same thing myself..but found it very incomplete..can he give an example of a live trade which he has undertaken as per the formula
I'll give it a shot. The whole formula basically says, if the last week's been really rocking and we have had an uptrend we can probably get in the market (and don't even think about it if it hasn't). How do we define 'really rocking'? We say we have the first Resistance(R1) ~300 points above the first Support(S1).
Uh, of course you use the pivot point calculator to get R1 and S1. Next, move on, buy yourself a call at S1 (you are sure it won't go below this and can only go up), some soda and popcorn and tune into MTV. But hang on, just in case you are one of those brooding types, you'd buy yourself life insurance before you dive into the couch -- so buy a put at S1(its tough going through the roof of this one, and in case it falls, you've just saved your bum).
Such a this hedged position should see you through most weeks of any year. And that's that!
The explanation could do with some reviews, though.