Tick Volume & Pivot Point Trading System

OUR HEAD TRADER COMBINES TICK VOLUME AND PIVOT POINT TO CREATE A TRADING SYSTEM

 

The Tick Volume & Pivot Point Trading System is used to initiate trades for discretionary accounts.

Disclaimer:  PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.  ANY REPRESENTATION  TO THE CONTRARY IS A VIOLATION OF LAW.  INVESTING IN THE STOCK MARKET INVOLVES RISKS AND IS NOT SUITABLE FOR EVERYBODY.

Tick Volume

Markets usually do not move smoothly and continuously in one direction.  Prices fluctuate constantly.  They must be assessed incessantly to determine emerging trends, reversal of trends, and probable ranges of a continuously trading security.

TICK VOLUME monitors the changes in volume over a given period of time.  The influence of the changes in Tick Volume on intra-day price action are sometimes used to confirm trends, identify price range, and determine zones of likely reversal of trends.

Serious inquiries about Tick Volume focus almost exclusively on the following questions:

• Are prices up on increasing volume?

• Are prices up on decreasing volume?

• Are prices down on increasing volume?

• Are prices down on decreasing volume?

Tick Volume is captured in histogram formations.  On every formation there are very distinct price-volume relationships that may be used to argue that traders going short the market, (borrowing shares and selling them in anticipation of falling prices) tend to exert the dominant pressure on the price action.

 
There are also other price-volume relationships that may be used to argue that traders going long the market, (buying shares in anticipation of rising prices) tend to exert the dominant pressure on the price action.

Tick Volume is used as an aid to identify the prevailing tendencies of a continuously trading security and to forecast the intra-day tendencies of its price.

Pivot Point

Pivot Point is determined by using relative valuation levels manifested in the price distribution of the previous trading day.  It is computed by taking the Arithmetic Mean of the high, the low, and the close of the previous trading day:

H+L+C/3=Pivot Point

In this system the Pivot Point is interpreted as the point of inflection of the market.

Once the Pivot Point is computed, it is used throughout the current trading day as a guideline to monitor the central tendency of certain securities, more particularly the (NASDAQ) QQQ, the (DOW JONES) DIA or (the S&P) SPY.

Our Trader uses the Pivot Point, the Tick Volume and most importantly his experience and judgment, in probing for intra-day entry levels, exit levels, as well as valid support and resistance parameters for the securities he is trading.

This trading system based on the combination of TICK VOLUME and PIVOT POINT, provides infinite opportunities to implement many different trading strategies.

1. Opportunities to go either long or short the markets.

2. Opportunities to identify when other indicators such as IMPLIED VOLATILITY may be used in conjunction with the system to implement basic as well as advanced option strategies.

3. Opportunities to implement arbitrage strategies to profit from the widening or the narrowing of a price spread.

4. Opportunities to implement "dollar cost averaging" technique.

Our trader's objective is to use the TICK VOLUME and the PIVOT POINT as guidelines to trade any of the three indices.

Trades initiated will consist of a minimum of 500 shares per $25,000.00 in a discretionary account.

Profit objective per trade will vary with market condition and the intra-day range of the security traded.

With every trade initiated a certain percentage amount of the portfolio will be placed at risk.  The amount at risk will vary from a minimum of one cent to a maximum of one dollar.  Using a standard market order placing guide, (stops order, limit order, market order), instructions to close an open position will be issued a few cents above or below the amount at risk.

Stop and limit orders do not guarantee exact execution.  They express the trader's intent to close or open a position.  Such orders may be filled at a price very different from the price originally intended.

All orders are time stamped to ensure accurate record keeping of all the trades initiated.

Using TICK VOLUME and PIVOT POINT our Trader seeks to position a portfolio to take advantage of the fluctuation of the market indices QQQ, SPY, and DIA.

On average the daily volume on each of the indices often exceeds 50 million shares.  The liquidity and the price range on these indices create continuous trading opportunities.

Once these securities reach previously identified PIVOT POINT, our Trader analyzes the corresponding TICK VOLUME and determines the sensitivity and the strength of the PIVOT POINT.

From that instant the hunt for intra-day support and resistance zones begins.  As they are identified, MARKET ORDERS, STOP or LIMIT orders are used to initiate trades, close open positions, or limit losses on open positions.

Trades done using this system are speculative.  They are made with the intent of financial gains, to hedge against potential losses or to seek gains from arbitrage trading.

Certain heavily traded securities may also be traded from time to time.  At such time our Trader will use increase or decrease in IMPLIED VOLATILITY as guidelines to initiate those trades.

Disclaimer:  PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

The system calls for all open positions to be closed when the predetermined stops or limits become market orders and are executed.  Sometimes market orders are used to open or close a position, to realize a gain or limit a loss.  If the stops or limits are not filled during the trading day, the Trader may at his own discretion and judgment close all opened positions at the close of the trading day.

Any investor who chooses to open a discretionary account to be traded using the TICK VOLUME and PIVOT POINT SYSTEM acknowledges that although a trading system based on TICK VOLUME and PIVOT POINT may identify trading opportunities there is no guarantee that any trade initiated will be successful.

Nor have any guarantees been made that stops and limits orders will protect an investor's account against unfavorable trades.

The investor acknowledges and understands that inherent to this Trading System is a high turn over rate of the capital invested.  This is not to be mistaken or construed as churning.  This is short term trading.

Complete trades are done (in and out of a position) to protect the account, limit a potential loss or realize a profit.

Brokerage commission per account will vary from a minimum of $25.00 to a maximum of $150.00 per trade of 500 shares.  A customer's account may among other charges incur charges such as: exchange fees, wire transfer fees, account transfer fees, margin interest payment when applicable.  A detailed list of the incidental charges and fees is available upon request.

The trader is not entitled to receiving any fees from interest earned on cash balances in the account.

The brokerage commission is the only compensation the Trader will receive for his services.

All trading activities will cease if and when the original equity used to fund a account experiences a decrease of 30%.  Trades will resume if the investor submits to the company a letter indicating his intent to extend the trading authorization to the Trader.  With every extension of the trading authorization, there is a new 30% cut off limit.

The Trader will also trade his own account as well as the company's account and the accounts of many other clients of the Company.  In so doing some trades for different accounts may be competing for (fills) positions in the marketplace.  Such trading may create conflict of interest for the Trader.  All orders are time an date stamped in an effort to mitigate the conflict of interest.  Other steps that will be taken to mitigate the potential conflict of interest are:

1. Execute all orders for the Company's account only after the trades for the clients accounts have been filled.

2. Execute orders for the Trader's account only after orders for the clients accounts have been filled.

3. Increase in the minimum commission amount only after consulting with a client.

4. Provide a client unconditional access to the trading tickets of the trades done on his behalf.

The entry and exit signals what our Trader looks for, are derived from the manual computation of the PIVOT POINT, his judgment, and his visual observations of the TICK VOLUME.

The signals the trading system yields are used exclusively for the benefit of the account of investors participating in the investment program using the TICK VOLUME and PIVOT POINT TRADING SYSTEM.

This service is available only to investors interested in short term trading the market indices S&P (SPY), DJI (DIA), NASDAQ (QQQ).  Certain heavily traded securities may also be traded from time to time.  At such time, extreme increase or decrease in IMPLIED VOLATILITY will be used as guideline.

Investors who are willing to consider this investment program must:

1. Be able to assume the risks involved in short term trading.

2. Have had prior experience in the securities markets or other businesses.

3. Be currently in a high tax bracket.

4. Have speculative growth as one of their investment objectives.

5. Be able to satisfy the $25,000.00 minimum required by the New York Stock Exchange and the FINRA.

P.S.:  A monthly performance review is mandatory.

Required Forms:

• New Account Agreement

• Option Agreement

• Margin Agreement

• Discretionary Trading Authorization

GLOBAL TRADING GROUP, INC. WILL SUPPLY THESE FORMS TO INTERESTED INVESTORS, TOGETHER WITH THE FREE BOOKLET

"CHARACTERISTICS AND RISKS OF STANDARDIZED OPTIONS."

Global Trading Group, Inc. (Global), is a Securities Brokerage and Investment Banking firm with a strong expertise in growth companies, special situation investments, private placements, risk management, and option strategies.
 
Founded in 1999, Global Trading Group, Inc. is a member of the Securities Investors Protection Corporation (SIPC).  Every client account is protected up to $25 million dollars. Each account is protected by SIPC for up to $500,000 ($100,000 limitation for
cash claims $400,000 in securities). An additional $24.5 million in protection is provided by an excess insurance policy.
 
The firm operates on a fully disclosed basis with First Southwest Company, an entity founded in 1946.
 
We serve the financing needs of small and medium size businesses with 5 to 30 million dollars in sales a year. The firm offers comprehensive investment banking and brokerage services meeting the needs of the average investor, as well as high net-worth individuals looking to formulate and achieve personal financial goals through portfolio diversification and risk management.
 
Our client base is global with clients in every part of the world including: Africa, Asia, the Caribbean, Continental and Eastern Europe, and North America.
 

The Head Trader is Mr. William Savary.  He will implement the trading system.  Mr. Savary has been in the securities industry since 1983.  He graduated from the New School for Social Research with a Master's degree in Political Science and Political Economy.  He has attended all the courses for a Ph.D. in Political Economy.  Mr. Savary is a principal in the firm and holds the following licenses:

• General Securities Representative

• General Securities Principal

• Option Principal

• Commodities Broker License

• Uniform Securities License

CONTACT OUR OFFICE TO REQUEST UPDATED RESULTS FOR THE MOST RECENT TRADING PERIOD.

Disclaimer:  PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.  ANY REPRESENTATION  TO THE CONTRARY IS A VIOLATION OF LAW.  INVESTING IN THE STOCK MARKET INVOLVES RISKS AND IS NOT SUITABLE FOR EVERYBODY.
 

Visit Our Bookstore

Buy books, videos and more!

This service is provided by Alpha Trade
nbsp;