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Although the S90/Crossover levels appear to
be similar to traditional pivot points, they are not. Pivot
points are generally known as levels of possible reversal entry
points as well as profit targets. Although pivot points are
awesome at times, the problem I have observed is that they are
published on the Internet and may give clearing firms and banks
the opportunity to herd traders into a position of taking
massive stops from smaller traders. This may be considered
swimming with the sharks, so to speak. These S90/Crossovers may
sometimes, by coincidence, appear at the same level as a pivot
point, but they are more consistent for reversals or targets,
even during conflicting seasonal market times. Many traditional
traders feel that the market is seasonal and therefore a signal
that works this season may not work the next season. For
example, in July 2006 many pivot traders suffered great losses,
while those who understood how to accurately predict
S90/Crossovers were able to avoid losses during this same time
period.
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I have a low opinion of pivot points,
because they are published on the Internet
where thousands of traders may trade them. It is very likely
that traders follow daily pivot publications like sheep to the
slaughter. They often have temporary wins, which build
confidence, but then suddenly these traders with almost
identical protective stops are taken out by the thousands by
only one or two pips. It has been said by very famous authors
and professional traders that trading with the crowd will
ultimately lead to disaster, and it often seems that those who
trade pivots eventually disappear from the market unless they
have great sustaining power. To make profits in the market, you
must learn to trade against the crowd. I believe that when the
market direction is confirmed by River Developing the Profit
Targets or Entry Points of a Trading Oscillator Indicator (ROI)
oscillators, the S90/Crossover will help you trade against the
crowd with success.
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