One More Tool For More Profits! "Trending123 Pivot Calculator"

Overview

In every time frame, there's a pivot system for a stock: pivot, resistance, and support. There are a lot of ways to calculate pivot points, but in a nutshell, pivot is the average of the stock's high, low, and closing prices for the time frame; support is where to buy the stock; and resistance is where to sell it.

Using pivot in our trading sounds simple at first. For instance, if the stock closes above the pivot, it's bullish. If it closes below the pivot, it's bearish. And if it closes on pivot, it's neutral. But what about risk/reward? Where do you set your stop-loss? How do you know if you're in a good trade?

That's where the Trending123 Pivot Calculator comes in. All you have to do is plug in the stock's ticker, and it automatically fills in the low, high, close, and open and calculates the support and resistance for four types of pivotsfloor trader pivots, Woodie's pivots, Camarilla pivots, and DeMark pivots (you can read the descriptions of each under the pivot table for how to use them).

If you want to use the pivots to day-trade, click on the "Calculate Risk/Reward" button directly under the pivot table. This will show you where to buy on the pivot, where to take profits, where your stop-loss should be, and so on. If your stop-loss is at 5%, and your profit potential is at 2%, that's what I call a negative risk/reward, since you stand to lose more than you could gain. If your stop-loss is at 2%, and your profit potential is at 5%, that's what I call a positive risk/reward.

You can use the pivot calculator to find out what stocks are great buying opportunities, very risky, or just plain neutral. For example:

1. If the profit potential is much greater than the stop loss, it might be a good buy.

2. If the stop loss is much greater than the profit potential, you should probably stay away.

3. If they're about the same, it's probably not worth trading.

The Trending123 Pivot Calculator doesn't give you guaranteed profits (nothing does), but it can be a very useful tool in assessing the risk and reward of the stocks you're interested in. After all, unless the reward is greater than the risk, why would you want to trade them?

The Trending123 Pivot Calculator doesn't give you guaranteed profits (nothing does), but it can be a very useful tool in assessing the risk and reward of the stocks you're interested in. After all, unless the reward is greater than the risk, why would you want to trade them?

Instructions

Calculating pivots with the Trending123 Pivot Calculator is easy. In fact, it's a one-step process.

Enter a ticker in the "Symbol" field. All other data will populate (be filled in) automatically.

To learn more about how to use pivots and risk-reward analysis, see the guidelines below.

Risk Analysis

If you want to day-trade using the above pivot points you can check out our Risk Calculator to estimate possible gain/loss for the trade. It couldn't be easier:

Click the "Calculate Risk/Reward" button above to calculate the risk/reward potential of a day-trade in that security. The high/low/close from the pivot calculator will be automatically loaded into the risk calculator.

How to trade using pivots

Floor trader pivots come from the pit traders. A lot of people use them so they are almost self fulfilling. The main pivot point is usually used as the primary trend indicator. If price is above the primary go long and if below go short. The others act as normal support and resistance levels. Generally price will not penetrate S/R 3 if it does it will probably be a big move. You can use these for daily, weekly and monthly.

Camarilla pivots show probable levels of support and resistance in a current trend. It's kind of hard to find information on these and I don't use them much. R3/S3 are the major levels where you can expect a reversal. R4/S4 are the breakout levels. If price trades above those levels it's a good bet price is going to continue in that direction. They seem to work pretty well though on the daily charts.

DeMark pivots aren't really pivots. They were invented by a guy named Tom DeMark and attempt to identify the high and low points for the period. They need the current open price to determine which formula to use in the calculation. Mostly good for Daily.

Woodie's pivots are pretty much like the floor trader pivots but the formula gives more weight to the closing of the previous day. These are good to use on days where there is a large gap up or down. When I use them I tend to use both woodie and the floor trader pivots until I can determine which ones are going to give me the better signals.

MESSAGE BOARD POSTS!! (09/26/08)

Im a new subscriber and was absolutely blown away by my first trade which was the second pot put...400+%per your recommendation!! That was great, keep em coming!!! thanks a million!
Greatful subscriber...Monte..Fla.

Monte

MESSAGE BOARD POSTS!! (09/26/08)

HI John, just like to say what an outstanding job on the stock selection, if you keep this up I won't renew my other services!!!!

Dan

MESSAGE BOARD POSTS!! (09/26/08)

Keep up the great work on those options! Your crystal ball has been absolutely amazing! Or should I say Juicy! Thanks for your insight and instruction, as well!

ProfitMaven

MESSAGE BOARD POSTS!! (09/26/08)

Keep it coming JL, love the work! I can tell you my portfolio is up 250% in two weeks...love it, thanks

Tbird

MESSAGE BOARD POSTS!! (09/26/08)

Hi John - you are truly amazing - thanks for the options lately. They were much needed.

Estelle

This Has Been One Of Our Best Months Of The Year

Let's Review The Look Out Below Update

It Was July 8th 2008 On This Special Trade Talk Weekly Report

"Look Out Below!"

Closed Out Options Trades

More On The Next Update Of How We Played The Commodity Bubble Crash!

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The BAN On Short Selling Has Opened Up Pandora's Box!!

Federal regulators have banned short sales of more than 800 stocks, mostly of financial companies, in an effort to stabilize prices in a shaky market. But the move may have an unintended consequence: reducing the stock market's efficiency and prolonging the current crisis.

Short-sellers, like investors who go "long" on a stock, make money by buying low and selling high. The difference is that short-sellers reverse the usual chronological order, selling first and buying back later, at what they hope will be a lower price. They accomplish this time switch by selling borrowed shares and agreeing to return them later.

So why do I say "The BAN On Short Selling Has Opened Up Pandora's Box"?

1. Who is going to be there to buy stocks if they continue to fall that actually adds the liquidity needed to stop a stock from a complete and total collapse? Let's face it, if it wasn't for short covering how do rallies and new uptrend's actually begin?

2. Short sellers still have a plethora of other stocks to now target and focus on that likely wouldn't drop as hard or as fast because we still have no uptick rule in place. So a stock that might have a 20% pullback over a month's time might now get a 40% pullback in two weeks time.

The uptick rule, put into effect in the 1930s, was intended to prevent short-sellers from accelerating the downward momentum of an already-declining stock. So we have sectors now that are getting crushed TWICE as hard because shorts are going to find something worthy of shorting anyway.

It could be for a hedge or for a variety of other reasons but now short sellers just have a more narrowed focus list of stocks to hammer, let's hope for all the "short seller" haters you don't own one of those stocks!

3. Every time any BAN on short selling in any country or on any index or in any sector it has NEVER prevented NEW LOWS coming! FACT!

4. The prevention of short selling won't change a companies underlying fundamentals, ask anyone that owns RIMM (Yes full discloser we have been short that stock from above $100.00 and had the puts for extra leverage on more than one occasion this past month.) The fact is people sell stocks for the same reasons as always since the beginning of time. Here are just 3 reasons why people sell.

1. Happy (With the profits)
2. Sad (With the performance)
3. Mad (Company failed to live up to expectations)

The bottom line, the only people who can bring down a stock are the ones who were once bullish on the company but now for which ever reason changed their mind.

This is like blaming a book of matches for burning down a house, rather than the person who set the fire.

For all those that thought this was a good thing check out the charts of stocks like X, CF, POT, GMXR, BUCY, MOS, MON, GDP, APA, AKS, CLF etc: because short sellers haven't gone away they are just now nailing all new sectors........Commodity related stocks especially!

Because laws are changing so fast this post might be removed, the color of RED might be illegal and if you mention the word BEARISH don't be surprised if you soon won't get a fine. Maybe that will help with the bailout plan, just "fine" anyone that sells stocks.

So the bottom bottom line, don't expect shorts to be running into cover stocks like C, JPM, GS, GE and a slew of other stocks when things get REALLY BAD because those BUYERS have left the building!

Another brilliant move compliments of those that are just as incompetent of the very people running the companies in which the ban has been placed on.

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Armageddon "Party Of One" Your Table Is Now Ready

The stock market posted is worst one-day percent decline in 21 years after the House of Representatives rejected the $700 billion financial relief plan.

Commodities as a whole tumbled 5.9% on global economic concerns. Crude oil futures fell 10.7% to $95.48 per barrel.

The Dow, Nasdaq, and S&P 500 fell 6.7%, 9.1% and 8.5%, respectively, settling at session lows. The Nasdaq and S&P 500's declines were the largest since Black Monday in 1987, while the Dow posted its worst day since the September 11 attacks.

8 More Options Trades Closed Today

Listen To What Subscribers Have To Say About Todays Events!

Message Board Post 09/29/08

JL,

I have doubled my trading account, in 1 and 1/2 months, trading very conservative and usually never more than 1% of my account per trade.

Thanks John! I was starting to lose my confidence in trading, but it has since been restored. Everyone just needs to keep a level head and not be foolish trades while we get these nice profits.

Ping

Message Board Post 09/29/08

Wow JL keep up the great work!!

My portfolio is up 180% this month.

Very nice!

Bail

Message Board Post 09/29/08

JL, increased my portfolio by 50% this week with your option trades. EOG, APA, GOOG puts up over 300%.

weissdml

Message Board Post 09/29/08

JL,

I started out trying to state what my numbers were but then looked at it and thought "boy are they going to think you are a big liar". So I will just say these profits we have had this month are OBSCENE.

Donna

Message Board Post 09/29/08

JL,

One word...AWESOME

Joined in July 08 and up 42% in my account that I trade your recommendations in trading in and out of your option recommendations. And I don't over leverage at all, just two or three contracts per trade. Actually I would say I have been too conservative but at least I can sleep at night.

I take profits early then re-enter and do it again as long as you have not issued exit alerts on the whole trade. I must admit that I did not take every option play either so shame on me as I likely would have doubled my account.

Outstanding JL...keep up the good work.

RichD

Message Board Post 09/29/08

Hi John, my trading has been exceptional since I joined 123, I have about 6 different alert systems with Schaffers!! But I believe you have them beaten hands down! Maybe I shouldn't have mentioned their name, anyway I thinking about dropping all of them, if you can repeat what we have had so far I will. I am eagerly awaiting the next round of option plays, I realize it has alot to do with the market tanking but you were right on and I appreciate your hard work for me, I have made more $$$$$ since I have been with you than I have made in the last 6mo. With somebody else!! Keep the options coming!

Dbruner1

Message Board Post 09/29/08

Hi John,

Thanks for all the option gains lately.

POT = +429%
POT = +106%
CLF = +224%
GOOG = +104%
TSO = +51%
TSO = -38%
AKS = +220%
POT = +50%
AKS = +48%
Rimm = +121%
AAPL = +247%

Ok I will quite now before I get too excited!

Thanks John

Chewy

Message Board Post 09/29/08

JL,

My trading result this month has been excellent. My account was in bad shape and have doubled it this month. to restore it . So I made 100% of account value this month.

Thanks JL for your excellent teaching and insights.

Rocks

Message Board Post 09/29/08

JL,

Just wanted to say thanks again JL, in the past 2 months, I have almost doubled 1 account and tripled another, unbelievable!

HM

Message Board Post 09/29/08

JL, my portfolio has gone up 375% since August! THANK YOU!!!

Bud

Message Board Post 09/29/08

UNBELIEVABLE EFFORT BY JOHN...He has been right on the money, and he is reading this market extremely well. This man knows what he is talking about, when it comes to stocks, and options. No one better at making you money. Just to tell you something, my portfolio has now increased over 500% in the past month with John's recommendations...No one better! Thanks John for your hard work!

Tbird

Message Board Post 09/29/08

Thank you JL!! Winners closed today include

POT 144%
AAPL 225%
APA (only) 86%
EOG 194%
GOOG 279%

Keep the great suggestions coming!

Doro

Message Board Post 09/29/08

WOW JL, you're the bomb! What a fantastic month!

This is my best day ever. I've cleared 6 figures net, on option plays today alone. Awesome!

Keep up the super pix! Cheers!

Pat

Message Board Post 09/29/08

JL

Up 225% in two months following T123

ttf

Message Board Post 09/29/08

John, These option trades you've been having have really made a difference in my account! I just have a small account, and it has doubled in the last week! THANKS SO MUCH!!! Keep them coming!

dlo

Message Board Post 09/29/08

Thanks so much JL. My accounts have gone up exponentially! Keep those option trades coming.

Gary

Message Board Post 09/29/08

JL

John, you are THE MAN... I'm up 72% ( trading account ) since last Thursday. I cannot thank you enough!!

David

Message Board Post 09/29/08

JL,

Option trading has been excellent this past month. Am waiting for your recommendations following today's massive losses. I was a bit afraid to follow all of your advice during July and August, but did profit from the POT and X puts. Keep it up. After today, and Congressional failure to produce a package to help Main Street, we're all going to need it.

Mirlbeck8

Message Board Post 09/29/08

John,

I am really thrilled that you are now providing these fantastic options. Finally, i am begining to see some Fabulous profits. My portfolio, as small as it is, has gained 50% today. Many thanks and keep up the good work. I look forward to more great calls by you.

Dave

Message Board Post 09/29/08

JL,

Thanks to you john I am up this month 200% your fantastic

Jules

Message Board Post 09/29/08

John there is something to say other than your trades have been extremely profitable. If a person listens and watches you charts and updates with a desire to learn to do this themselves. They can. There are other sites but, none that actually teach there customers how to do this on there own. Others say buy this, then tell you to sell that. You have shown your genuine concern that you want not only to make your business profitable but teach your clients how they can go on there own. This is a value on its own.

Thank You

Ron Davis

Message Board Post 09/29/08

JL,

John, you are the best! I banked several thousand today on your APA, EOG and POT option recommendations alone and the month of September 08 was my all time best in the option account, thanks to your option suggestions. Thank you and for doing the T123 site.

Bob R

Message Board Post 09/29/08

JL,

Keep up the good work. My account doubled since Fri. Thanks alot!

Pellamaniac

Message Board Post 09/29/08

JL,

I can't thank you enough! This month was the best ever! One of my brokerage accounts doubled today alone. Keep up the great work!

Orelindel

Message Board Post 09/29/08

John, you are the best. Have been with several Financial websites over the years, but you are far and away the best I have ever used. You help us LEARN on top of giving great stock plays. Of course, your options plays are OBSCENE!!

Thank you for your great advice. How do I buy a lifetime membership????!!!!????

Duck-Runner

Message Board Post 09/29/08

JL,

Only one superlative needed - "best"! Best day, best week, best month, thanks to your options trades. I have multiple accounts, so the trade count may be misleading. According to my logs, I closed 116 options trades in September thus far. Of those, 80 were directly from T123 recommendations (and I follow directions). Of those 80 T123 trades, 10 had 200%+ profits, another 13 had 100%+ profits, and only 11 were losing trades. Overall profit from those 80 trades were 60%+. Overall profit from my own trades were 55%+ (I look forward to being able to brag about a better return from my own trades).

Now I understand it's useful to talk about percentages because your subscribers have different account sizes. But sometimes it's also illuminating to see some real dollar amounts. The 80 T123 trades I closed in September netted me over $144K in realized profits. My total realized profits from options trades in September (thus far, one more day to go) is over $204K. T123 trades have accounted for 70%+ of thsoe profits!

Keep up the good work, JL. I want to make sure that going forward, you will continue to do 70% of the work for me, and I will take care of the remaining 30%. I sure don't want to work any harder than I am already working...

Thank you, JL.

Coach A

Message Board Post 09/29/08

John:

9/29/2008 APAVR Profit $ 2231.96

9/29/2008 EOGVP Profit $ 1969.46

9/29/2008 GOPVP Profit $ 4214.46

9/29/2008 PYPVF Profit $ 7374.92

$15790.80 Total profit

Thanks for a great day!

Jerry

Message Board Post 09/29/08

JL,

WOW I love options... up about 200% this month... keep up the good work john.

Drsez

Message Board Post 09/29/08

I don't think I have had a better day % or $ ever.
Please keep the options coming.

Thanks Pix

JP

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"I trust the soundness of our financial system".."where's the emergency exit?"

A Descending Continuation Triangle features two converging trendlines. The bottom trendline is horizontal and the top trendline slopes downward. The pattern illustrates lows occurring at a constant price level, with highs moving constantly lower. The pattern displays two highs touching the upper trendline and two lows touching the lower trendline.

This pattern is confirmed when the price breaks out of the triangle formation to close below the lower trendline.

Trading Considerations

Duration of Pattern

Consider the duration of the pattern and its relationship to your trading time horizons. The duration of the pattern is considered to be an indicator of the duration of the influence of this pattern. The longer the pattern the longer it will take for the price to reach its target. The shorter the pattern the sooner the price moves. If you are considering a short-term trading opportunity, look for a pattern with a short duration.

Target Price

The target price provides an important indication about the potential price move that this pattern indicates. Consider whether the target price for this pattern is sufficient to provide adequate returns after your costs (such as commissions) have been taken into account. A good rule of thumb is that the target price must indicate a potential return of greater than 5% before a pattern should be considered useful.

Criteria that Supports

Look for a region of support at the bottom trendline and a line of resistance at the highest high of the Triangle.

Moving Average

Compare prices to the 200 day Moving Average. When prices are close to or touch the 200 day Moving Average this signal is considered stronger.

Volume

A strong volume spike on the day of the pattern confirmation is a strong indicator in support of the potential for this pattern. The volume spike should be significantly above the average of the volume for the duration of the pattern. In addition, the volume during the duration of the pattern should be declining on average.

Example

All major U.S. Indices end the third quarter on a historic note. The Dow and S&P 500 experienced their worst-point decline in history set on September 29, 2008. The Dow and S&P 500 had their fourth consecutive quarterly drop, tumbling 4.40% and 9.01% respectively. The NASDAQ Composite fell the most among the major Indices for the quarter, down 9.19%.

Six out of ten sectors in the S&P 500 end the quarter with losses over 9%. During this quarter, only the Consumer Staples sector is up with a gain of 4.13%.

Commodities declined across the board, with only Pork Bellies and Sugar up for the quarter.

**Crude Oil has dropped nearly 29% in the past three months.

The U.S. Dollar strengthened for the quarter, appreciating over 10% versus the euro and pound sterling.

Dow Top Performers QTD

Dow Worst Performers QTD

S&P 500 Top Performers QTD

S&P 500 Worst Performers QTD

Message Board Post 09/30/08

My portfolio is up 247% this month and I made 60% on yesterday's volatility alone.

Thanks JL

Craig

Message Board Post 09/30/08

My trading account has increased in value $53,000.00 between 8/29 and 9/29 thanks to guidance by John Lansing. I never had more than about $20,000 at risk at any one time, and usually more like $12-$15,000. I've tried a number of paid investment advisors over the years, but never found one half as effective as John. Not every play works - as he will tell you - but overall, he has an uncanny ability to pick entry and exit points. Thank you, John, for helping me move out of the perpetual loser's category into the winner's circle and recoup all my losses over the past many years.

Keith

Message Board Post 09/30/08

Jl - you really are teaching us to "fish for life". My account is up 70% over the past month. Keep up the great work! You are a true gem!

kathysp

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We Have Finally Found The Weapons Of Mass Destruction.....Congress!!

The crazy thing is the market lost 1.3 "Trillion Dollars" in "market cap" when investors fled the building on the news that congress wasn't going to pass the "700 Billion Dollar" bailout bill. Today we had a snap back counter trend rally but this is what it looks like close up.

But the real reason for this blog post was to let everyone know about what happened with our short GOOG. Which I have a target of $200.00 a share (Descending Triangle Breakdown). Some subscribers actually got their orders filled for the cover at $200.00 and $250.00 a share for over 100+% profits (we have been short from the 400's).

This is the bad news; all those trades will be reversed. During the last hour we saw huge volatility and Google got pounded however NASDAQ put out a press release that all our trades will be reversed. Target has not changed on the stock but the money some thought they made on the covering of the short will not appear in your account come tomorrow.

We did sell all our puts yesterday when GOOG hit a low of 380's (see blog post from yesterday with our profits on both batches of GOOG puts.) That said we still have the stock as an open short.

NASDAQ says errors caused Google stock flop before bell, raises closing quote to reflect gain

The last-minute pounding Wall Street gave Google's shares was caused by "erroneous orders" that NASDAQ says it is canceling.

Minutes before the closing bell Tuesday, a flurry of trades sent the Web search leader's stock plummeting 10 percent to close at $341.43.

NASDAQ said in a statement that erroneous orders routed to NASDAQ from another market center were responsible for the high volume of trades.

The exchange raised Google's closing price to $400.52 -- a 5 percent gain for the day -- and canceled all trades below that amount and above $425.29 between 3:57 p.m. and 4:02 p.m.

Press Release

Message Board Post 09/30/08

Thanks to John, Dr. J and T123 folks > --my trading skills and abilities have really grown, plus my trades are now profitable--greatly appreciate the education.

Dennis

Message Board Post 09/30/08

JL,

Thanks for the great options this past couple of months. i have tripled my account and am looking forward to more. your guidance and knowledge is greatly appreciated.

gpaw

Message Board Post 09/30/08

JL,

Unbelievable option profits!!!! Please, please, please keep the options coming. My portfolio is up 83% just in September.

Great job JL!

Purdue

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