Pivots, Patterns, and Intraday Swing Trades: Derivatives Analysis with the E-mini and Russell Futures Contracts, + Website

APPENDIX B

Color Legend

Many elements of the Pivot/Exhaustion Grid depicted in earlier chapters project specific price levels of support, resistance, or exhaustion far into the future, beyond the right edge of the video screen. As time proceeds, price may move away from the source of these price levels for an extended period of time before returning. In order to identify the source when such levels reappear on the Trader's screen, a color code is used to assist in the identification, as well as a label depicting the exact number and the date it was incurred. A monthly low obviously has greater significance than does a daily.

Seeing unfamiliar lines reappearing on the screen days or weeks later can be confusing. The particular colors chosen are only important insofar as they serve mnemonic memory triggers. Mine are pretty obvious, but your own may be preferred; the more obvious, the better. Here are mine:

• Lines colored cyan are for Highs, like the sky, and those depicting Lows are dark blue, like the sea. Yesterday's High and Low from day-only data are plotted in a heavy dash style. Overnight High/Lows are not as critical as daily High/Lows from yesterday, so they plot with thin solid lines, but are more important than intraday High/Lows, which only plot with thin, dotted lines. All these lines are set to terminate-if-touched, as their usefulness as indicators ends when broken.
• Resistance lines from the Floor Trader's Pivots grid are lighter green, like the upper, new foliage ...