1. Pivot Point Trading System Introduction Presented by Doug Allen Presented by Doug Allen

2. Presentation Outline What are Pivot Points? Why would you use a pivot point trading system? When would you use the system? How does a pivot trading system work? Basic entry and exit signals using pivots points What are Pivot Points? Why would you use a pivot point trading system? When would you use the system? How does a pivot trading system work? Basic entry and exit signals using pivots points

3. What are Pivot Points? “Potentially” key support and resistance levels Available on Prophet Charts and TOS Charts Base pivot calculated by High + Low + Close ÷ 3 of prior period time frame Support 1, 2, 3 and Resistance 1, 2, 3 levels are calculated off of the base pivot level Available on multiple time frames: Daily, Weekly and Monthly > often coincide with Fib Levels “Potentially” key support and resistance levels Available on Prophet Charts and TOS Charts Base pivot calculated by High + Low + Close ÷ 3 of prior period time frame Support 1, 2, 3 and Resistance 1, 2, 3 levels are calculated off of the base pivot level Available on multiple time frames: Daily, Weekly and Monthly > often coincide with Fib Levels

4. Why would you use a pivot point trading system? The need for a system with clearly defined entries and exits The need for a system with well defined targets Having clearly defined targets makes it easier to calculate risk/reward ratio Trading intraday using “Day” pivot levels offers an abundant amount of trades The need for a system with clearly defined entries and exits The need for a system with well defined targets Having clearly defined targets makes it easier to calculate risk/reward ratio Trading intraday using “Day” pivot levels offers an abundant amount of trades

5. Persons vs. Regular Pivots Persons Pivots developed by John Persons Persons attempts to simplify and focus only on probable levels (attempts to weed out excess) Persons available only on TOS platform Pivot Points available on TOS and Prophet Find what works best for you Persons Pivots developed by John Persons Persons attempts to simplify and focus only on probable levels (attempts to weed out excess) Persons available only on TOS platform Pivot Points available on TOS and Prophet Find what works best for you

6. Pivots on TOS Platform

7. Persons Pivots on TOS

8. Pivots on Prophet Charts

9. Pivot Time Frames Daily Pivot Levels for Intraday Trading Weekly Levels for Swing Trading Monthly Levels for Longer Term Trading Todays focus will be on Daily Pivot Levels Daily Pivot Levels for Intraday Trading Weekly Levels for Swing Trading Monthly Levels for Longer Term Trading Todays focus will be on Daily Pivot Levels

10. Daily Pivot Levels Best for Intraday Trading (trends and reversals) Can use 15 Minute Chart to determine trend Can use 5 Minute Chart for entry / exit signals Stronger when daily levels coincide with Weekly and/or Monthly pivot levels Best for Intraday Trading (trends and reversals) Can use 15 Minute Chart to determine trend Can use 5 Minute Chart for entry / exit signals Stronger when daily levels coincide with Weekly and/or Monthly pivot levels

11. Daily Levels for Intraday Trading 5 Minute bars, Daily Pivot Levels - best with Regular Pivots

12. Weekly Levels for Swing Trading Daily Bars using Weekly Pivot Levels - best with Persons Pivots

13. Monthly Levels for Longer Term Trading Weekly bars with Monthly Pivot Levels - best with Persons Pivots

14. Confluence of pivots from multiple time frames can be useful when looking for price targets or strong areas of support and resistance Works on tops and bottoms Professional traders are watching these levels too Caveat: Like all other S and R levels, they don’t work all the time, but many times they do Confluence of pivots from multiple time frames can be useful when looking for price targets or strong areas of support and resistance Works on tops and bottoms Professional traders are watching these levels too Caveat: Like all other S and R levels, they don’t work all the time, but many times they do Confluence of Time Frames

15. Convergence of Time Frames

16. Targets and Risk / Reward Simplified Must have a target before calculating Risk/Reward (must have stop level too) Must have 3 to 1 reward to risk to enter trade Target is next pivot level, but be optimistic that it can move much more so have a plan how you will scale out of partial and let some of the winner run Focus on the target, let the trade work for you Must have a target before calculating Risk/Reward (must have stop level too) Must have 3 to 1 reward to risk to enter trade Target is next pivot level, but be optimistic that it can move much more so have a plan how you will scale out of partial and let some of the winner run Focus on the target, let the trade work for you

17. Good Risk / Reward Example

18. Bad Risk / Reward Example

19. When would you use the system? Trending days are good Highly volatile days are good - lots of bounces Avoid doji days (mixed market internals) Don’t force trades, let them come to you Be aware of weekly and monthly pivot levels Trending days are good Highly volatile days are good - lots of bounces Avoid doji days (mixed market internals) Don’t force trades, let them come to you Be aware of weekly and monthly pivot levels

20. Entry Signals - 5 Minute Chart Key is patience to wait for good signals Trade only in the direction of the 15 minute trend for best results Buy at Support Sell at Resistance Pivot can act as support or resistance Use longer term technicals to assist in direction Key is patience to wait for good signals Trade only in the direction of the 15 minute trend for best results Buy at Support Sell at Resistance Pivot can act as support or resistance Use longer term technicals to assist in direction

21. Entry Signals - 5 Minute Chart Buy at High Close Doji (HCD) Once a doji or bottoming candle has formed at the pivot level, wait for a candle to close completely above the trigger candle for entry Sell at Low Close Doji (LCD) Once a dojo or topping candle has formed at the pivot level, wait for a candle to close completely below the trigger candle for entry Confirm with 15 Minute Stochastics Buy at High Close Doji (HCD) Once a doji or bottoming candle has formed at the pivot level, wait for a candle to close completely above the trigger candle for entry Sell at Low Close Doji (LCD) Once a dojo or topping candle has formed at the pivot level, wait for a candle to close completely below the trigger candle for entry Confirm with 15 Minute Stochastics

22. High Close Doji (HCD)

23. Low Close Doji (LCD)

24. Exit Signals - 5 Minute Chart Once target is reached, exit when sell signal appears which would be a HCD or LCD at target Alternatively, exit majority of the position at Target One and let the remaining position run incase the trade continues to work Adjust stop to breakeven once Target One has been reached Once target is reached, exit when sell signal appears which would be a HCD or LCD at target Alternatively, exit majority of the position at Target One and let the remaining position run incase the trade continues to work Adjust stop to breakeven once Target One has been reached

25. Low Close Doji (LCD)

26. Pre-Market Preparation Identify the Pivot Level (available the day before) Watch Futures to find out where market is likely to open If it opens near support, look for a bounce up If it opens near resistance, look for a fade down Identify the Pivot Level (available the day before) Watch Futures to find out where market is likely to open If it opens near support, look for a bounce up If it opens near resistance, look for a fade down

27. Summary Pivots are great levels to build a system on Your system will likely be unique to everyone else's, adjust as you see fit Look for buy signals at support Look for sell signals at resistance When the system triggers a signal, act on it. When the system says get out, get out! Pivots are great levels to build a system on Your system will likely be unique to everyone else's, adjust as you see fit Look for buy signals at support Look for sell signals at resistance When the system triggers a signal, act on it. When the system says get out, get out!

28. Resources Candlestick and Pivot Point Trading Triggers by John Persons John Persons DVD John Persons Website www.nationalfutures.com www.nationalfutures.com www.mypivots.com Candlestick and Pivot Point Trading Triggers by John Persons John Persons DVD John Persons Website www.nationalfutures.com www.nationalfutures.com www.mypivots.com