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    Structural Pivots Method (SPM)

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    harshkumar patel
    The document describes the Structural Pivots Method (SPM) for technical analysis. SPM involves marking small pivots (SPh and SPl) and large pivots (LPh and LPl) on price charts. Small pivots are marked based on 2 lower/higher closes compared to an anchor bar, while large pivots require breaks of previous small pivots. The method provides rules for objectively marking pivots to identify trends and support/resistance levels.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Structural Pivots Method (SPM)

    Uploaded by

    harshkumar patel
    3K views10 pages
    The document describes the Structural Pivots Method (SPM) for technical analysis. SPM involves marking small pivots (SPh and SPl) and large pivots (LPh and LPl) on price charts. Small pivots are marked based on 2 lower/higher closes compared to an anchor bar, while large pivots require breaks of previous small pivots. The method provides rules for objectively marking pivots to identify trends and support/resistance levels.

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    SPM

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    The document describes the Structural Pivots Method (SPM) for technical analysis. SPM involves marking small pivots (SPh and SPl) and large pivots (LPh and LPl) on price charts. Small pivots are marked based on 2 lower/higher closes compared to an anchor bar, while large pivots require breaks of previous small pivots. The method provides rules for objectively marking pivots to identify trends and support/resistance levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3K views10 pages

    Structural Pivots Method (SPM)

    Uploaded by

    harshkumar patel
    The document describes the Structural Pivots Method (SPM) for technical analysis. SPM involves marking small pivots (SPh and SPl) and large pivots (LPh and LPl) on price charts. Small pivots are marked based on 2 lower/higher closes compared to an anchor bar, while large pivots require breaks of previous small pivots. The method provides rules for objectively marking pivots to identify trends and support/resistance levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 10

    Structural Pivots Method (SPM)

    www.marketswithmadan.com
    Structural Pivots Method (SPM) - Small Pivots
    • In a rally, when we get 2 lower closes and lower lows, we get to mark Small Pivot High
    (sph)

    • In a decline, when we get 2 higher closes and higher highs, we get to mark Small Pivot
    Low (spl)

    www.marketswithmadan.com
    Structural Pivots Method (SPM) - Small Pivots

     Concept of anchor/reference bar

     Importance of creating rules objectively to mark the pivots

     If rules are adhered, all will mark the same pivots

    www.marketswithmadan.com
    Small Pivots – Rules for marking

    Small Pivot High Small Pivot Low Common Rules

    • To mark sph, we need two lower lows • To mark spl, we need two higher • Bar 1 & Bar 2 for marking small pivots does
    and two lower closes compared to highs and two higher closes not have to be consecutive bars UNTIL WE
    GET TO MARK THE SMALL PIVOT (HIGH OR
    anchor bar compared to the anchor bar LOW)
    • SPH is the highest point in between 2 • SPL is the lowest point between 2 • Anchor Bar or a reference bar is taken as a
    SPLs SPHs starting point to compare high/lows
    • SPH alternates with SPL • SPL and SPH alternate with each • Only Bar2 of prev marked pivot can ‘start’
    other, SPL cannot follow another SPL acting as the anchor bar to mark the next
    pivot
    • Recently marked small pivot is temporary. It
    becomes permanent only after marking the
    subsequent small pivot.

    www.marketswithmadan.com
    Structural Pivots Method (SPM) - Small Pivots

    20
    www.marketswithmadan.com
    Structural Pivots Method (SPM) - Small Pivots

     Higher high and higher low SPs – SUT

     Lower high and lower lows SPs - SDT

    www.marketswithmadan.com
    Structural Pivots Method (SPM) - Large Pivots

     Large pivots have specific set of rules to mark.

    They can be used to define larger trends

    LPs can be used for pure trend following (ride the trend till it bends)

    www.marketswithmadan.com
    SPM Large Pivots – Rules for marking
    • To mark LPH, we need to break the previously marked spl(temp spl break is enough)

    • To mark LPL, we need to break the previously marked sph(temp sph break is enough)

    • LPH and LPL alternates...

    • To mark LPH, we go back to see all the sphs (that were marked after the last LPL – including
    highs) and mark the highest sph as LPH

    • To mark LPL, we go back to see all the spls (that were marked after the last LPH – including
    lows) and mark the lowest spl as LPL

    • Once marked, Large pivots are permanent (no temp pivot concept like spl/sph)

    www.marketswithmadan.com
    Structural Pivots Method (SPM) - Large Pivots

    www.marketswithmadan.com
    Structural Pivots Method (SPM) - Large Pivots

     Higher high and higher low LPs – LUT

     Lower high and lower low LPs – LDT

     Pictures of stocks with Structural pivots marked – weekly


    and daily

    www.marketswithmadan.com

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