Copyright © 2002 by John L. Person III, CTA
Swing Trading Using Candlestick charting with Pivot Point Analysis
Written by John L. Person

Introduction:
This booklet was written with the intention of enlightening your knowledge and awareness of different techniques of technical analysis. As a professional trader and public speaker, John Person strives to help educate my community of investors and clients. As an example of his commitment to that goal John want to provide this manual to you. John Person believes that continued education can help increase knowledge and through improved knowledge comes confidence. This booklet is not designed to cover every detail of the material discussed but to help you to explore a new avenue or refresh your memory of material you may have learned previously.

About the Author:
John Person is a 22-year veteran of the Futures and Options Trading industry. Since his start on the floor of the Chicago Mercantile Exchange, he has worked his way throughout the industry as a Broker, Trader, Branch Manager for one of Chicago's largest discount / full service firms under the tutelage of a former Chairman of the Chicago Board of Trade. Early in his career, John worked as an apprentice for George C. Lane - Credited with the creation of the oscillating system known as Stochastics. In addition, John studied Candlestick Charting techniques
by Dan Gramza, the man who helped Steve Nison from his first book. John has applied his knowledge throughout the years by appearing as a regular contributor on several financial television programs and as a keynote speaker at some of the countries top Investment Expositions. In addition, John is the editor of "The Bottom-Line Newsletter",
a weekly commodity publication that incorporates fundamental developments as well as technical analysis including his own proprietary trading system-using support and resistance levels on a daily, weekly and monthly basis. This helps his clients identify potential buy or sell signals on a short, intermediate or a long-term basis.

CHAPTER 1
Pivot Point Analysis is a famous technique that is used as a price forecasting method for day traders and professional traders as well. It is very popular among professionals.
You should have a better understanding of this method after reading and studying this booklet and the benefits to you may help improve your timing of entry and exit points of the market.
There are numerous advisory services, brokerage firms and independent traders that use one form of it or another.

Support /Resistance, price range forecasting pin pointing tops and bottoms and target trading are some of the terms that are used to refer to it as well. For most traders on the floor of the exchanges it is considered common knowledge or old school of teaching.

Most novice individual investors and even brokers are not familiar with this formula. John Person believes that most inexperienced investors have a hard time with incorporating this technique in their trading "tool box" due to the time it takes to calculate the numbers. But make no mistake the professionals' look at it and so should you.

First here is the mathematical formula where P= Pivot point; C= Close: H= High: and L= Low.
The Pivot point number is the high, low, close added up and then divided by three. P=(H+L+C)/3= pivot point.