At this time, I will share to you all about the Livermore method secret. My study and perception about his method could be different with anyone else. So if you find any uncomfortable written by me, you must understand that I’m not an expert just like you.
At this post, I will only write on global perception, not on detailed. You must find by your self about the details just like my self doing it.
Livermore using pivot method, as you all know, with the six layers of categorized price. See the picture bellow that I take from google.com image:
(Click the picture to view larger size)
Livermore do trade only when the price on the pivot area and comes out to Natural Rally/Natural Reaction for test trade. When the price goes to up trend/down trend area, he will put all of his own fund to get much profit (maximum volume/Lot)
How to determine Livermore’s pivot? By using pivot point indicator? My personal answer is NO.
The Livermore’s pivot is not a point of pivot. It is a range of pivot. The range cannot be counted before the price is moving. More higher time frame, more acurate for marking the pivot range. Still confuse? Here is my last image post bellow (I found it on google.com too) that you should use to configure how to determine and mark the Livermore’s pivot.
I implemented Livermore’s pivot on my daily forex trading and it works great!