Welles Wilder's Reaction Trend System:
Widely known as pivot points system
This indicator works well in non trending shares only. In trending shares, using this
indicator for entry/exit decisions in not recommended. In such case use
Use "Welles Wilder's ADX" for trend determination.
If share price opens below "Pivot Point" there are more chances that you will get the "Buy Point" first and vice versa.
- Go Long on "Buy Point" and do profit taking on "Sell Point" or book loss on "Buy Stoploss" and take new short position.
- Go Short on "Sell Point" and do profit taking on "Buy Point" or book loss on "Sell Stoploss" and take new long position.
- After taking a position, if corresponding Profit taking or Stoploss points are not hit on same day, carry the position to next day.
- On next day use Profit taking and Stoploss points for that day.
Stock market is a risky place and trading based on this indicator is totally on your own risk.
We assume absolutely no responsibility if you bear losses in your trading.