This is the trading playbook where the
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Hello everyone and welcome to the
trading playbook. My name is Lawton Hope
here with Verified Investing and we have
another episode of the trading playbook.
Um, thank you guys so much for watching
this Saturday. And before you go
anywhere guys, I like to say please
consider liking and subscribing
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channel. Leave a comment below. Tell me
what TA pattern you want to see next. I
know I've read some of the comments and
you guys are asking me to do specific
charts, but I'm asking for specific
setups. Technical indicators that you
think that I use that that would be
helpful for you to understand.
But regardless, today here's the play.
We're talking about pivots. And let me
go ahead and share my charts. Pivots
like double top, double bottom, and how
to use them.
Right? So, what is a pivot?
Right? What is a pivot?
And to
to explain very, very basically, a pivot
is
I'll write this down for you.
Basically, the end of a wick.
Simply enough, it's just the end of a
wick.
Right? End of a wick. But when we're
looking to use pivots, not all pivots
are created equal.
There are multiple pivots, but not all
of them are created equal.
For example, oh, let me go ahead and
take this down with me.
You can see that there was
a pivot high here.
A pivot high is at the top of the wick
and pivot low is at the bottom of the
wick, okay?
Pivot high is at the top of the candle
and pivot low or pivot bottom um
is the
bottom of that candle. Right? So, you
can use wicks in all sorts of ways as
support and resistance mostly. But, what
do I mean by not all pivots are created
equal?
Well,
there are
if I scroll out different pivots. Like,
for example, this up here is a pivot
high. And what does it coincide with?
It's the highest point Baba in this case
has gotten since the 30th of September
2025. Now, Alibaba has gone higher
previously. This would be
double top, also a pivot, which is just
the previous all-time high. But, this is
a pivot high, right? And because it is
the highest point that Baba has reached
in you know, several months or about
half a year plus, right? It's going to
be
significant resistance. And so, we can
just write here pivot high.
Pivot high
resistance.
Right? So, we're expecting resistance
there.
In the same way, if we go to the other
end right? Of the spectrum and look all
the way back here down here, we could
say there's a pivot low.
A pivot low there on Baba.
And although it's not the lowest point,
I don't believe. Let's see.
Yeah, not quite. Almost. Not quite the
lowest point that the stock has ever
gotten to,
even though it hasn't been there, it is
the lowest point Baba has been since
2022
or December of 2022. So, this would be
pivot low
support.
And you can use these for intraday, for,
you know, for for day trading, swing
trading, all sorts of different
uh different things. And I'll show you
on another chart, for example.
Just remember that pivots are the end of
the week. And also, it doesn't have to
be the all the way at the top or all the
way at the bottom. We can see here if we
go in a little closer,
right? You can say
"Oh, there was earnings here on
Alibaba."
Right? Alibaba had earnings and pushed
up over 9%. Well, you can use the top of
that point and say this is the pivot
high.
The high plus
earnings high. So, what that means it is
the highest point Alibaba got to after
reporting earnings before this very
steep fall.
Right? So, there should be some
resistance there. But, let's use another
chart just to uh continue to reinforce
it. Let's go to, say, Micron, right?
So, Micron
you could say, "Hey,
this is
not only is it double top, so previous
all-time high, but it is a pivot high, a
resistance."
Similarly, on the bottom,
you could say
"MU's right here,
pivot low of support."
Pivot low of support. So, there you have
two clear levels, one of support and one
of resistance. And now, the question is,
well, how well do these pivots even
work?
Right? And that's a great question.
Well, let's take a look at uh historical
data, right? Historical data. So, let's
start really easy right here.
So, you saw this was on my chart earlier
and there's the $960
level right here from the 12th of June
and was the highest point for you know,
almost a month, for like 2 and 1/2 weeks
on Micron. But, Micron then came down,
hit this $960 level, and this is not
even a significant pivot. This is just
the lowest point it got since the 12th
of June. Just that low pivot there
coinciding with that psychological
number of $960.
But, look guys, off of that
you can see immediately a 1 and 1/2
bounce and then up to a 6% bounce off of
this. And we can just go back on any
chart and just do this, right?
So,
here on here on MRVL,
let's take a look at previous areas of
potential support or resistance. So, you
had a pivot high here at the highest
point it got
Right, this was, I believe,
yeah, it was a previous all-time high
that was hit, right? So, going into this
day here on Wednesday, the 20th of May,
you were hitting levels you hadn't hit
in, you know, about 6 days or so, right?
But, if we take a look at what happened,
price pushed up to that pivot high and
then pulled back 3%. An awesome day
trading opportunity. And that's what I
mean by saying
that every single pivot is not created
equal. And that's what's going to give
you the edge in today's episode. Right,
here's the edge.
Right?
The most important pivots are
all-time highs,
like this one,
all-time lows, like I showed you before,
as well as pivots from earnings, right?
On earnings. This is going to be
tremendous support. And you see how it's
playing out here, and how it played out
this week, right? This was literally the
highest point
we got right after earnings on MRVL
before a nice push up, right? So, you
saw price came down, hit this level,
bounced 2 and 1/2% intraday. The next
day it opened up there, and then pushed
up over 5% guys.
So, you can see how powerful these
pivots are for both support and
resistance.
But,
there are some common playbook mistakes
that you guys have to watch out for when
you're choosing to trade this.
Like I said before, not all pivots are
created equal. And such is the case for
something like SpaceX, right?
On SpaceX,
we came down and hit this pivot
previously around 151, 152, and
absolutely crushed it making new
all-time lows this week.
But, your question might be like, "Well,
Lawton, why didn't that work? If pivots
are supposed to work, how come we didn't
get a bounce there?"
Because on a stock like this that has
been around for
give or take two, two and a half weeks,
maybe a month,
you're not going to have that much data.
And because you don't have that much
data, you're not expecting these pivots
to be as powerful.
Right now on SpaceX, I have the only
level that I'd be comfortable taking a
trade on based solely on pivots is this
pivot high, previous double top,
previous all-time high. When the stock
opened up, when everyone said, "Buy into
SpaceX. This is an awesome generational
buying opportunity, you know, to buy
this trillion-dollar company."
Well, it pushed up and then absolutely
collapsed. So, that is why I think this
pivot up here should provide some
resistance.
But, this is what you're looking forward
for in tomorrow's play call. And in
tomorrow's episode, guys, I'll go over
some of these pivots again, but give you
three actionable trades that you can
take this upcoming week based solely on
pivots. Pivots are awesome. They're
pretty basic and elementary, but
they work, right? And that's the most
important thing. Before I go again,
guys, please consider liking this video,
subscribing it, uh subscribing to our
YouTube channel. My name again is Lawton
here at Verified Investing. If you're
ever curious about learning how to trade
cryptocurrency and want to take a course
created by yours truly, please scan that
QR code. It really helps me out, um and
I appreciate all of your support, guys.
Hope you have a great rest of your
Saturday, and I'll see you tomorrow.
Bye, guys.
>> That's the trading playbook. Today's
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