Nitfy_Trading_Tools

Pocket Pivot

Pocket Pivots were introduced in the book "Trade like an O'Neil Discipline" by Gil Morales and Dr .Chris Kacher.

According to the book, following are the characteristics of a pocket pivot:

  • Just prior to the pocket pivot , as the stock is moving within its overall base structure, tighter price formations, that is, less volatility should be evident in the stock’s price/ volume action as viewed on its chart. The stock should have been “respecting” or “obeying” the 50-day moving average during the price run that occurred prior to the time the stock began building its current base
  • On the pocket pivot you want to see up-volume equal to or greater than the largest down-volume day over the prior 10 days


What will you get with this tool?

This tool will plot the following:

  • Simple Moving Average (10, 21, 50, 200)
  • Pocket Pivot Buy Signal

Conditions when Pocket Pivot signal will be generated:

  • Stock should be trading above previous day closing price
  • Stock should be trading above 10 day moving average
  • Stock should be within 5% of 10 day moving average
  • Stock should be trading above 200 day moving average
  • Current day volume should be greater than maximum of all down(red) days in previous 10 days

Disclaimer:

This tool will act as a supporting tool to help you find Pocket Pivots . Please follow proper risk management and trade planning before using any inputs from this tool in your trading.

Suggestions or Questions?

Feel free to write to me at nifty .trading.tools@gmail.com
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

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