Trades futures using calculated pivot levels as support, resistance, and breakout triggers
| Strategy Type | Intraday Support/Resistance Trading System |
| Market Outlook | Trades futures using calculated pivot levels as support, resistance, and breakout triggers |
| Risk Profile | Leveraged instrument trading; defined risk at pivot levels; 0.5-1.5% account risk per trade |
| Reward Profile | Multiple intraday trades possible; targets at successive pivot levels; 1.5-3x risk reward |
| Time Horizon | Intraday (minutes to hours); positions typically closed before session end |
| Best Conditions | Trending days for breakouts; range days for reversals between pivots |
| Indicator Basis | Pivot Point (PP) with Support (S1, S2, S3) and Resistance (R1, R2, R3) levels |
| Primary Instruments | ES (S&P 500), NQ (Nasdaq), CL (Crude Oil), GC (Gold), 6C (CAD futures) |
| Trading Hours | Varies by contract; ES/NQ regular session 9:30 AM - 4:00 PM ET; globex nearly 24 hours |
| Broker Requirements | Canadian residents can trade US futures through IBKR, Questrade (limited), or US-based brokers |
| Margin Requirements | Day trading margins lower than overnight; varies by broker and contract |
| Tax Treatment | Futures gains/losses typically 100% taxable as income in Canada; consult tax advisor |
| Tfsa Eligibility | NO - Futures cannot be held in TFSA |
| Rrsp Eligibility | NO - Futures cannot be held in RRSP |
| Commission Consideration | Per contract fees; multiple trades at pivot levels can add up |
| Currency Note | Profits/losses in USD; currency risk and conversion fees apply |
| Cad Futures | 6C (CAD/USD futures) allows trading Canadian dollar; pivots work well on currency futures |
Start with Classic/Floor Trader pivots. They are the most widely used, have the longest history, and are what most institutional traders reference. Once comfortable, explore Fibonacci or Camarilla for specific uses.
Use the prior day's High, Low, and Close from the regular session (9:30 AM - 4:00 PM for index futures). Most charting platforms (TradingView, ThinkorSwim) have pivot indicators that calculate automatically.
Pivots work on all liquid futures. ES (S&P 500), NQ (Nasdaq), CL (Crude Oil), and GC (Gold) respect pivots well due to high volume. Less liquid contracts may not respect pivots as cleanly.
No. Wait for confirmation - a reversal candle pattern at the level for bounces, or a strong close beyond for breakouts. Trading every touch without confirmation leads to low win rates.
No. Futures cannot be held in TFSA or RRSP. Pivot trading on futures must be done in a margin account, and gains are 100% taxable as income in Canada.
By 10-10:30 AM: If price has crossed PP 2+ times and is hovering near it, it's likely a range day (trade bounces). If price opened on one side and hasn't looked back, it's likely a trend day (trade breakouts/retests).
Regular session pivots (RTH) are recommended for most traders. They capture the main trading activity. Full session includes overnight, which has different participants and lower volume.
Use weekly for context and daily for entries. If daily S1 is near weekly S1, that's confluence - stronger level. If daily shows long bias but weekly shows you're in a bearish zone, be cautious.
Gaps change the context. Gap above R1: R1 is now support. Gap below S1: S1 is now resistance. The skipped level often gets tested as the opposite role (support becomes resistance, etc.).
Based on risk: (Account × Risk%) / (Stop Points × Point Value). For a $50K account, 1% risk, 6-point stop on ES: $500 / (6 × $50) = 1.6 → 1 ES or 16 MES. Never risk more than 1.5% per trade.
Use minute or tick data. Calculate pivots from prior session H/L/C. Test specific scenarios (PP bounce, S1 bounce, R1 breakout, etc.). Track by day type, time of day, and contract. Use walk-forward validation.
Components: 1) Pre-session pivot calculator for all contracts, 2) Real-time price monitor vs levels, 3) Confirmation filters (candle patterns, volume, TICK), 4) Alert system. Start with alerts, evolve to semi-automation.
Strong trend days (momentum overwhelms levels), major news events (fundamentals override technicals), very wide prior range (levels too far apart), low liquidity sessions. Recognize these conditions and adapt.
Major levels (PP, S2, R2, weekly levels): Can use 1.25x base risk. Minor levels (S1, R1): Use 1x base risk. Very minor (midpoints): Use 0.75x. This increases exposure at higher probability levels.
Give most weight to Classic pivots (most followed). If Fibonacci R1 aligns with Classic R1, that's confluence - stronger. If they conflict, go with Classic. Use other types as secondary confirmation, not primary.
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