Hello, my friend, and welcome to this post on Pivot Points Trading. In this post, we’re diving into a classic yet often overlooked tool in technical analysis—floor pivots—and uncovering a hidden gem that could make all the difference in your trading strategy.
I hope you enjoy it!
Was this post/video on Pivot Points Trading helpful to you? Leave a message in the COMMENTS section at the bottom of this page.
PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.
Pivot Points Trading – Video
Today’s topic is floor pivots, also known as floor trader pivots. Some people believe these are outdated, arguing they were only relevant in the days of open outcry trading when traders operated in physical pits. While that logic makes sense, floor pivots still hold value today because the markets often respond to these levels due to a self-fulfilling prophecy. Traders and even some algorithms still use them for support, resistance, buying, selling, and taking profits—though, unfortunately, many traders tend to misapply them and lose money as a result.
What Are Floor Pivots? – Pivot Points
At their core, floor pivots are based on a simple mathematical formula using the high, low, and close prices of the previous day to determine potential support and resistance levels for the current day. These levels are static and don’t change throughout the trading day, which gives you clear price targets before the market opens. The main levels are the Pivot Point (PP), which is the central equilibrium point for the day, resistance levels above the pivot point (R1, R2, R3), and support levels below it (S1, S2, S3).
Introducing Mid-Pivots: The Hidden Gem – Pivot Points
Most traders overlook what I call the “secret sauce”—mid-pivots. These are the halfway points between the primary pivot levels. For example, you can plot mid-pivots between the Pivot Point and R1, or between the Pivot Point and S1. These gray levels—often ignored—can be powerful because the market frequently reacts to them, offering additional support and resistance zones that aren’t immediately obvious. You can also place mid-pivots between R1 and R2 or between S1 and S2 for even more reference points.
While I avoid saying any trading tool always works, mid-pivots often hold up well as support or resistance levels. Whether a level holds depends on market conditions, such as momentum, supply, and demand as price approaches these areas. Mid-pivots are particularly useful when there’s a wide-ranging day beforehand because the primary pivots will be spaced far apart. On narrow-range days, you might not need them since the market tends to move cleanly between the standard pivot levels.
Pro Tip: Combine Price with Timing
One pro tip to keep in mind is that mid-pivots are especially effective on days following a wide-range trading day. When the previous day has a wide range, the main pivot levels will naturally be far apart. In these cases, mid-pivots provide valuable intermediate support and resistance zones. On narrow-range days, the market typically moves between the regular pivots without needing the mid-levels.
Final Takeaway
While pivot points focus on price, don’t forget about the second axis on your chart—time. Timing tools help identify when price action aligns with critical time-based signals, which enhances your trading strategy. W.D. Gann emphasized the importance of finding the intersection of price and time for more accurate decisions. Incorporating a timing tool can help you spot opportunities when time and price converge.
Feel free to send in requests for future tutorials, and happy trading!
Free Offer!
I am offering one of my favorite trade strategies called the Rubber Band Trade. Absolutely free. And I want you to go and make some money. Try before you buy, or well, actually try and never buy because there’s no charge for this trade at all. And I’ll give you the setups, the exits, all the rules for it. It’s an objective rule-based method based on price pattern action that I don’t think anyone else teaches.
I’ve never seen anything else teach this particular price structure. So go get that by clicking on the green icon in the top right-hand corner of the video there, or by clicking on the green button below, and that’ll take you to a page where you can opt-in, get the video for the rubber band trade strategy, along with some other great free tutorials, one of my little mini-courses, absolutely free, courtesy of Barry Burns here at Top Dog Trading.
GET MY FREE MARKET ENTRY TIMING INDICATOR
BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at support@topdogtrading.com, and I’ll show you how to get access to that indicator.
What did you think of this Pivot Points Trading video? Enter your answer in the COMMENTS section at the bottom of this page.
PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.
FREE GIFT!
I’m giving away my favorite trading strategy that works in trading the markets. Just click on the button below, and I’ll personally send you an email with the first video.
Those interested in this video of Pivot Points Trading also showed an interest in this video:
https://www.topdogtrading.com/support-and-resistance-trading-strategy/
Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
https://www.youtube.com/user/TopDogTrading?sub_confirmation=1