Definition of 'Pocket Pivot'
- Current bar must close higher than previous bar (C0 > C1)
- For the previous 10 bars (day -1 through day -10) the close should be lower than the close on the previous day. For example C1 < C2, C2 < C3, ... C10 < C11.
- The volume on each of the previous 10 bars should be lower than the volume on the current bar. For example, V0 > V1, V0 > V2, ... V0 > V10.
V0 is volume on current bar.
V1 is volume on previous bar etc.
C0 is closing price on current (most recent) bar.
C1 is closing price on previous bar etc.
The concept of the Pocket Pivot was discovered by Chris Kacher and Gil Morales, prior money managers for William J. O'Neil. They introduced it in their book Trade Like an O'Neil Disciple: How We Made 18,000% in the Stock Market.
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