Short-term investing with pivots
Structure, timing, and discipline. Discover how you can invest in a structured short term using pivots, momentum, and clear rules.
- Use pivots as objective support and resistance lines.
- Confirm momentum with short averages (3 and 5 periods).
- Exit on time according to fixed rules via the VMA stop line.
Revisit investment course Short-term investing with pivots
Short-term investing It requires structure, discipline, and clear rules. Without a plan, a short-term position quickly becomes a medium- or even long-term investment — often with disappointing results.
In the video, Mark explains step by step how he short-term investing with pivots tackles, combined with momentum, simple averages, and a clear exit strategy. No complicated theory, but a practical and applicable system.
What is short-term investing?
Short-term investing does not mean the same thing to everyone. For some, it is intraday; for others, it is a few weeks or months.
In this approach we define short-term investing as:
- a horizon of a few weeks to a maximum of two months
- working with short averages
- and especially: get out on time according to fixed rules
Anyone starting with the short term must avoid leaving a loss-making position open in the hope of recovery.
Pivots as a basis
Dynamic reference lines calculated from high, low and close from the previous period — objective support and resistance.
Confirm momentum
Very short averages (3 and 5 periods) show whether there is sufficient force behind the movement.
Targeted selection
A limited list of stocks with clear movement and volume — no sideways or “dead” stocks.
Fixed exit rules
Maintain position above the VMA stop line; get out at a lock underneath. No discussion.
Why work with pivots?
Pivots are calculated based on the high, low and close of the previous period and function as dynamic reference lines.
They help to:
- to filter noise from the course
- to look at support and resistance more objectively
- to improve the timing of entry and exit
In this strategy, the pivot line the base, supplemented with very short averages (3 and 5 periods) to confirm momentum.
Selecting stocks: don't follow everything
A common mistake in short-term investing is monitoring too many shares at the same time.
In the video, you see how Mark works with:
- a limited and targeted selection
- shares with clear movement and volume
- conscious avoidance of sideways or “dead” stocks
In addition, the market momentum a crucial role. In a strong market, there are more opportunities; in a weaker market, caution is necessary.
Entry, follow-up and exit
A good system is not just about getting on board. In this approach:
- boarding only occurs at a clear technical signal
- the position will be held as long as the price is above the VMA stop line notes
- the excursion only follows at a lock under the stop
This prevents emotional decisions and ensures consistency — an essential element in short-term investing.
Also useful on other time horizons
Although this video focuses on the short term, the same methodology can also be applied to:
- weekly charts
- longer trends
- or as a supplement to an existing investment strategy
The core always remains the same: structure, clear rules and discipline.
Key concepts from this lesson
- Pivot (pivot point)
- Reference level calculated from the high, low, and close of the previous period. Because the formula is fixed, everyone looks at the same lines — that makes pivots an objective anchor for support, resistance, and timing.
- VMA stop line
- A variable moving average serving as a moving stop loss. As long as the price closes above it, the position remains open; a close below it is the exit signal.
- Momentum
- The strength and speed with which a price moves. Positive momentum increases the likelihood that a breakout or trend will continue; without momentum, signals often remain without consequence.
- Short-term horizon
- In this approach: positions of a few weeks to a maximum of two months, driven by short-term averages and strict exit rules — no intraday trading.
- Trailing stops
- A stop level that moves up along with the price. This way, you protect accumulated profits without cutting the ride short.
Want to learn more about investing?
Would you like to get started with technical analysis and structured investing yourself?
Short-term investing with Pivots - FAQ
This publication is for educational and informational purposes only. It does not constitute an invitation to buy or sell, nor does it constitute personal investment advice.
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