Pivots are the best technical tool for both trading and investing that you probably aren't using. Here's why:
One of the few tools to provide all three components of a successful trade or investment: superior risk-reward entries, effective trade management, and exact exits.
Can be utilized for long term investing (6 mths - 1 year +), medium term positioning (1 - 3 months+), short term swing trading (about 1 week), and daytrading too.
Pivots work on ETFs, all major stock benchmarks including international indexes, stocks (especially popular names), the bond market (rates, futures and bond ETFs), currencies, commodities and VIX!
Superior to MACD, RSI, Bollinger bands, stochastics, etc. Check the many examples on the blog and daily SPY comments.
Pivots provide a unique perspective on buying strength & selling weakness. If you buy what holds up best in a pullback according to The Pivot Perspective, you'll usually be well rewarded in the next rally. Likewise, in bear market environments, sell what fails to recapture a pivot level and your shorts will be leading other indexes down.
With pivots know when risk is for real by watching TLT, VIX, XIV, and more. Pivots work on these too.
Nearly all big market turns have multiple major pivot levels in play. They say no one rings a bell at the top, but the pivots ring bells on every big turn! Just check our home page image. :)