T R A D I N G R O O M

PivotBossPREMIUM

T H E

PRESENTS

THE PIVOTBOSS SIGNATURE SETUP SERIES

with Frank Ochoa, AKA PivotBoss Author, Secrets of a Pivot Boss

T R A D I N G R O O M

PivotBossPREMIUM

T H E

PRESENTS

THE ABSORPTION SIGNATURE

with Frank Ochoa, AKA PivotBoss Author, Secrets of a Pivot Boss

PivotBoss Signature Setup Series

1. Absorption Signature: When OTF Responsive Participants absorb a price level after a recent top or bottom, a distinct signature is revealed — The Absorption Signature, which helps to pinpoint major turning points in a market. Some of the most significant tops and bottoms occur with this signature attached — IN ALL TIMEFRAMES!

2. Rejection Day: When the market probes through current support or resistance after an extended price discovery phase, but fails to establish acceptance beyond that key pivot, a Rejection Day develops. This is a significant day, and typically develops a long tail, ideally marking the new top or bottom of the recent price discovery phase.

3. Absorption Zone: After the Rejection Day, OTF Responsive Participants will look to absorb prices at The Absorption Zone, which is a zone somewhere between the midpoint of the rejection day (or tail) and the previous support or resistance level whose breach sparked the rejection. Responsive participants will absorb many rotations into this zone, which builds energy for the squeeze or liquidation to come.

4. Re-Absorption Signatures: The Market may see many Absorption Signatures throughout the life cycle of a trend, which are designed to provide extra fuel to the existing, ongoing price move. These are called Re-Absorption Signatures.

5. Failed Absorption Signatures: Passive Participants can and do have their stops run, which can spark significant momentum moves, especially if OTF participants are on the losing side. Should an Absorption Signature fail, it likely forecasts a resumption of the current trend.

As traders, the ability to forecast, identify, and diagnose a developing top or bottom in the market is crucial. The PivotBoss Approach to spotting these significant events is recognizing The Absorption Signature, which occurs in all timeframes.

The Absorption Signature

T R A D I N G R O O M

PivotBossPREMIUM

T H E

PRESENTS

THE ADR BREAKOUT

with Frank Ochoa, AKA PivotBoss Author, Secrets of a Pivot Boss

PivotBoss Signature Setup Series

1. Compression/Expansion: The development of trading ranges (Compression) builds the energy that will lead to the next phase of price discovery (Expansion). ADR helps us quantify when a range is significantly compressed and due for expansion.

2. Volatility: Measures the SPEED of a market in order to forecast future volatility and price behavior. Markets rotate between LOW and HIGH volatility states. Low ADR readings (<65% ADR) suggest significant compression, implying expansion ahead.

3. The ADR Breakout (Expansion Day): A true breakout from a narrow ADR range includes an Expansion Day, which is a Trend Day on Day 1, wherein the session’s midpoint exceeds the breakout point and sees a Close beyond the range.

4. The ADR Breakout (Rejection Day): A failed breakout from a narrow ADR range includes a Rejection Day, which may take the form of a long tail on Day 1, wherein the market attempted range expansion, but failed and closes back within the range. This signature oftentimes leads to major expansion on the OPPOSITE side of the range.

5. A Variety of Trade Opportunities: Once TRUE expansion occurs from a narrow ADR range, a variety of trade opportunities present themselves over the course of the next several days, or even weeks. These opportunities include swing trades, day trades, and even scalps. Understanding when and where to look for these opportunities is key.

The PivotBoss ADR Method offers a complete approach to analyzing the volatility for a given market in multiple timeframes by simply using average daily range. The ADR Breakout helps us identify markets that are extremely compressed and due for significant expansion.

The ADR Breakout

T R A D I N G R O O M

PivotBossPREMIUM

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PRESENTS

THE MAX REVERSAL

with Frank Ochoa, AKA PivotBoss Author, Secrets of a Pivot Boss

PivotBoss Signature Setup Series

1. The Goal: To identify extremely UNDERVALUED and OVERVALUED opportunities for a shot at returning them to VALUE.

2. The Max Reversal: When price trades outside of the 3rd standard deviation band, and then closes back inside of SD3, look to fade price back to VWAP (VALUE), with a shot at returning price across value to the opposite SD3 band.

3. The Trigger: After closing OUTSIDE of SD3, look for a rejection that leads price back to the SD2 band, because this helps to quantify that counter-parties have gotten “PAID”, thus increasing the odds for a return to VWAP (VALUE).

4. The Entry: After price rejects prices outside of SD3 and reaches the SD2 band, counter-parties will look to ENTER the market upon the first RETEST of the SD3 band for a return to VALUE.

5. High Probability Target: The high odds target to reach will always be VWAP. Most of the trade should be scaled by the time VWAP is reached, which provides flexibility to add back to the trade, or merely allows the rest of the trade to attempt a move toward the opposite SD3 band .

6. Avoid Value Traps: Savvy traders must be keen to avoid VALUE TRAPS, which continually show extreme overbought or oversold conditions, as price repeatedly trades inside and outside the SD3 band. This is typically indicative of a price discovery phase (TREND), and fading this trend should be avoided.

PivotBoss Bands offer a powerful way to identify VALUE and OVER and UNDERvalued pricing. The Max Reversal setup is designed to identify when price is outside of the 3rd standard deviation of VWAP, which offers a high probability of returning to VALUE when properly qualified.

The Max Reversal

T R A D I N G R O O M

PivotBossPREMIUM

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PRESENTS

THE PEMA PULLBACK

with Frank Ochoa, AKA PivotBoss Author, Secrets of a Pivot Boss

PivotBoss Signature Setup Series

The PEMA PullbackThe PivotBoss PEMA Method includes a powerful approach to using pivot-based EMAs to identify opportunities in any market and in any timeframe. The PEMA Pullback is a simple, yet powerful setup that helps traders look for pullback opportunities in developing and mature trending markets.

1. The Goal: To identify pullback opportunities in trending markets.

2. The PEMA Pullback: When the PEMAs are “Stacked & Sloped”, look to fade opportunities in the Trigger Zone - between the Fast and Med moving averages - for short term trending moves.

3. The Trigger: After expansion from a NEUTRAL PEMA state, look for the PEMAs to become “Stacked & Sloped”. The first 2 to 3 pullbacks into the Trigger Zone (between Fast and Med PEMAs) can be defended for short term moves.

4. The Entry: Several approaches, including trading Rejection Tails, Closing inside and then back outside the PEMAs, or simply using the PivotBoss Oscillator paint bars for a mechanical entry approach.

5. High Probability Target: Goal is to push to a new high/low within the current trend.

6. Failed Acceptance: The trend is over when price fails to establish acceptance beyond the most recent high or low.