Brief Summary
Frank Ochoa, also known as PivotBoss, introduces a webinar on the power of pivot-based analysis. He shares his background, highlighting his experience in developing automated trading strategies and his book, "Secrets of a Pivot Boss". The webinar aims to demonstrate the effectiveness of pivot-based analysis for traders of all levels, emphasizing its universal applicability and predictive capabilities.
- Pivot-based analysis is universally applicable to all markets and timeframes.
- Pivots are leading indicators that self-adjust to volatility.
- Pivot analysis helps reveal hidden support and resistance levels.
Introduction
Frank Ochoa, also known as PivotBoss, welcomes everyone to the webinar focusing on the power of pivot-based analysis. He introduces himself as the author of "Secrets of a Pivot Boss" and shares his online presence across various platforms. He encourages viewers to explore his profile on PivotBoss.com to learn more about his 20 years of trading experience, which includes developing automated strategies at Nirvana Systems. He emphasizes how this early experience allowed him to quickly assess the effectiveness of different trading approaches, particularly the power and predictability of pivots in various market conditions.
Frank's Trading Background
Frank discusses his early exposure to trading in high school and college, leading to a full-time position at Nirvana Systems while still in college. His work focused on developing automated trading strategies applicable across different market scenarios. This experience allowed him to test and refine strategies using decades of historical data, quickly identifying what worked and what didn't. He found pivots to be incredibly powerful and predictive, helping to pinpoint market opportunities regardless of market conditions.
Secrets of a Pivot Boss
Frank shares that he compiled his experiences and insights into a book called "Secrets of a Pivot Boss," which contains foundational market concepts and has received positive feedback from traders worldwide, including floor traders. He modeled his approach on how floor traders and algorithms approached the market, blending their behaviors to create effective systems. The book reveals methods for profiting in the market, regardless of the trading timeframe or instruments used.
Webinar Overview
Frank states that the webinar is for inconsistent, novice, and experienced traders. He aims to showcase the power of pivot-based analysis, covering its concepts and the seven reasons why every trader should use them. The presentation includes slides, annotated charts, and live chart analysis, with potential for audience suggestions on stocks to analyze.
Seven Reasons to Use Pivot-Based Analysis
Frank presents seven reasons why every trader should use pivot-based analysis:
- Market Generated Pivots: Pivots based on market-generated information like price and volume attract greater market participation.
- Leading and Predictive: Pivots are leading indicators that forecast future price direction and behavior, allowing traders to plan ahead.
- Self-Adjusts to Volatility: Pivots automatically adjust to the market's current volatility, accommodating different market phases.
- Scalability: Pivots are scalable to any timeframe or subset of data, suitable for day traders, swing traders, and investors.
- Revealed Confluence: Pivots reveal hidden areas of support and resistance, providing an edge by identifying levels with multiple time frame confluence.
- Algo Advantage: Pivots are perfect for creating mechanical or fully automated algorithms to find and execute trading opportunities.
- Universally Applicable: Pivot-based analysis can be applied to any market and timeframe, regardless of trading style.
Pivot Boss Masters Training
Frank introduces Pivot Boss Masters, his higher-level training program that offers advanced education for traders of all experience levels. The training covers various disciplines, including volume-based, price-based, and pivot-based analysis. He shares slides to demonstrate the analytical approaches used with pivots, which include classic pivots, pivot ranges, Camarilla pivots, market profile pivots, and his own Pivot Boss pivots.
Pivot-Based Analysis Concepts
Frank explains key pivot-based analysis concepts such as pivot width analysis, pivot trend analysis, and value relationships. Pivot width analysis measures the relative width of a value area to forecast trending and trading range markets, helping traders anticipate market behavior and deploy appropriate bidding strategies. Pivot trend analysis guides traders on how to engage the market based on the prevailing trend, such as defending counter-trend rotations at pivots in trending markets. Value relationships forecast future price direction based on higher or lower value relationships.
Chart Analysis: Value Relationships
Frank analyzes a chart to explain value relationships, focusing on the pivot range and its implications for trading. He notes that a lower value relationship, where the pivot range is lower each month, indicates a downtrending market, making bounces into the pivot range optimal selling opportunities. Conversely, a narrow pivot range suggests potential expansion or increased volatility, while a wide pivot range indicates a trading range market. He also discusses change of bias, which occurs when the market breaks a lower value relationship and closes higher, signaling a potential shift to an uptrend.
Crude Oil and NQ Analysis
Frank analyzes crude oil charts, highlighting how narrow value relationships preceded significant expansions. He emphasizes the importance of recognizing these patterns to anticipate market movements. He also examines NQ (Nasdaq 100 futures), noting how a narrow pivot range led to a significant drop. He points out that in a downtrend, price pullbacks to the pivot range offer selling opportunities until a change of bias occurs.
Weekly Pivots and ES Analysis
Frank shifts to weekly pivots, using ES (E-mini S&P 500 futures) as an example. He illustrates how in a bullish trending market, pullbacks to the pivot range are buying opportunities. He emphasizes that this pattern continues until the market structure breaks, and he notes that these concepts can be applied across various timeframes.
Shopify Analysis
Frank analyzes Shopify using Pivot Boss pivots, which are based on the previous high, low, and close. He explains how these pivots can be used to create targets above and below the price range. He highlights how Shopify exhibited a strong uptrend, with pullbacks to the trigger zone and pivot range offering buying opportunities. He also points out how a narrow pivot range preceded a significant expansion.
Momo Analysis
Frank analyzes Momo, noting its strong start to the year with higher value relationships and pullbacks providing buying opportunities. He also discusses a change of bias after earnings, where a gap down created a lower value relationship, turning pullbacks into selling opportunities. He mentions using scans in Thinkorswim to identify lower, higher, inside, and narrow value opportunities.
Thinkorswim Software and Tools
Frank explains how to access the Thinkorswim software by opening a TD Ameritrade account, noting that it offers free data, charting, and scanning options. He shares how to load his Pivot Boss styles and indicators into Thinkorswim, providing links for easy import. He also introduces his Pivot Boss Advanced ADR indicator, which helps quantify average movement and identify compression, signaling potential expansion.
Facebook and Options Trading
Frank analyzes Facebook, highlighting its uptrend and pullbacks to the zone. He points out a narrow range leading to expansion and discusses the potential for a change of bias. He addresses a question about applying his trading logic to options, mentioning the increasing focus on options trading in his room and the use of ADR tools and pivots to identify strike prices. He notes the benefits of options for managing risk and trading smaller accounts.
Bonds and ZB Analysis
Frank addresses a question about bonds, specifically ZB (US Treasury Bond futures). He acknowledges that ZB has been more challenging recently but emphasizes that the core concepts still apply.
Leading Information and ITA Analysis
Frank emphasizes that pivots provide leading information, allowing traders to plan ahead. He explains how Thinkorswim forecasts the upcoming range and how his developing pivot range indicator helps identify where the pivot range will be. He analyzes ITA (iShares US Aerospace & Defense ETF), highlighting a pullback to the trigger zone and subsequent rally.
SPY Analysis and Book Offer
Frank analyzes SPY (SPDR S&P 500 ETF), noting the uptrend and pullbacks to the pivot range. He mentions key levels and suggests that any pullback would be a buying opportunity. He reiterates the book offer, celebrating the seventh anniversary of "Secrets of a Pivot Boss." The offer includes the book at a discounted price of $40 and a free month of access to his Premium Membership, which includes the trading room, proprietary tools, and additional training.
Conclusion and Gratitude
Frank thanks the audience for their time and expresses gratitude for their participation. He encourages viewers to reach out with questions and expresses his excitement for his upcoming second book. He reiterates the value of the book offer and invites viewers to join his trading room.
