How To Day Trade With Woodie’s Pivot Point

Woodie’s Pivot Point An Introduction

Using Woodies Pivot Points as Trading Strategy

As we have discussed above Pivot is the trend deciding level for a particular day so we can derive 3 basic rules for trading with pivots

  • If the market/Stock trades above the pivot point then the bias for the day is on long side ie.Buying is advisable.
  • If the market/stock trades below the pivot point then the bias for the day is for short side ie.Short Selling would be the preferred strategy.
  • If the market opens, gap up or gap down and trade near R2, R3 or S2, S3, it will exhibit a tendency to trade back toward the Pivot. Thus, the general rule, ‘Avoid buying the High or selling the Low’.
  • If either of S1 and R1 is penetrated, these breakout points will reverse their roles. ie.the first support S1 becomes the new resistance R1.

Let’s discuss the Pivot System with Nifty 50 on 15th July 2020 and how you could have traded that day using Woodie’s Pivot Point.

On 14th July 2020  NIFTY 50 had the following:

High – 10756

Low – 10563

Close – 10607

You can put this Figure in http://pivotpointscalculator.blogspot.com/

This gave us the following Pivot Levels:

Pivot Point =10633

Resistance 1 =10703

Resistance 2 = 10826

Support 1 = 10510

Support 2 = 10440

Now Let’s see the 5 Min Chart of NIFTY 50 below on 15th July 2020   and how could we trade using the Woodie’s Pivot Point

NIFTY 50 Opened at 10701  and immediately started going up. As per the Woodies Pivot Level System we take a long trade  above  R1 ie.10703 Keeping Sl of 30 Points

The first target for the trade is Resistance 2 ie.10827 , At this level a trader can either book profit or trail its position by keeping Sl at the entry price. High made was exactly 10827

Another Trade Traders can go Short below R1 with SL of 30 points and target of Pivot 

Let’s take another example of using Woodie’s Pivot levels to trade both Long and Short trade

On 14th July 2020  RELIANCE had the following data:

High – 1942

Low – 1887

Close – 1917

This gave us the following Pivot Levels:

Pivot Point =1916

Resistance 1 =1944

Resistance 2 = 1970

Support 1 = 1889

Support 2 = 1860

Now Let’s see the 5 Min Chart of RELIANCE below on 15th July 2020 and how could we trade using the Pivot Levels to trade both long side and short side.

Conclusion

Woodies Pivot Point levels are handy tools useful for day traders to know the potential market turning points. Pivots levels should never be used in isolation but a combination of Pivots levels with Candlestick pattern.

4 thoughts on “How To Day Trade With Woodie’s Pivot Point”

  1. I am using Woodies Pivots in Tradingview and in Fyers. I don’t see the same values that you were showing in the charts above

  2. Sir , if in a particular day if we get 2nd or 3 Rd chance to re enter above R1 or below S1 , should we

  3. Sir , as per the Woodies pivot point calculation , on 17th July after taking trade above R1 10820 it hi the 30 point SL (low 10783 ) and then went up again , in this scenario what should we do . Should we take SL after the closing of the candle or as per 30 points policy

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