A Pocket Pivot is........

Discussion in 'Educational videos and material' started by Bodacious, Sep 2, 2019.

  1. Bodacious

    Bodacious Active Member

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    A Pocket Pivot is a price/volume accumulation pattern. A Pocket Pivot occurs when price moves up with volume higher than the maximum down volume registered in the previous 10 days.
     
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  2. Bodacious

    Bodacious Active Member

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    The basic premise of the Pocket Pivot:

    • Institutional Buying creates new-high base breakouts, but we also know that institutional buying occurs within consolidations and during uptrends.
    • This buying within consolidations and uptrends in most cases leaves price/volume "footprints".
    • The pocket pivot describes that "footprint," and provides a clear, buyable "pivot point," or "pocket pivot buy point."
    • Pocket pivots also provide a tool for buying leading stocks as they progress higher within uptrends, extended from a prior base or price consolidation.
      https://www.virtueofselfishinvesting.com/pocket-pivot
     
  3. Bodacious

    Bodacious Active Member

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  4. Bodacious

    Bodacious Active Member

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  5. Bodacious

    Bodacious Active Member

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    Tips on Using Pocket Pivots
    • Not every pocket pivot point in a stock is a buy. Always check fundamentals / stories and market context behind the ticker.
    • Always double check for possible earnings / news releases before buying any stock!
    • Mind the volume and volatility. We advise at least >1 million volume traded per day.
    • Use a good and sound fundamental list to limit down trading candidates. You can use the StockTwits50- list or the famous IBD-lists from investors.com
      https://www.chartmill.com/documentation.php/indicators/Pocket-Pivot-(Chris-Kacher)?a=5&title=&cat=2
    Finding Pocket Pivots with Chartmill
     
  6. Bodacious

    Bodacious Active Member

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    Lets delve a little deeper and look at both sides of the volume/price of the pocket pivot equation.

    As was stated in the first post rising price and increased volume are both needed, but what happens when a stock open above the previous days close but the falls below the open to finish as a negative bar yet it still closed above the previous day?

    Here's an example...

    Untitled.png
     
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  7. Bodacious

    Bodacious Active Member

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    Same chart......

    22222.png
     
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