According to the book, following are the characteristics of a pocket pivot:
- Just prior to the pocket , as the stock is moving within its overall base structure, tighter price formations, that is, less should be evident in the stock’s price/ 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 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:
Conditions when Pocket 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 should be greater than maximum of all down(red) days in previous 10 days
This tool will act as a supporting tool to help you find Pocket . 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 .email@example.com
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.