Secrets of a Pivot Boss: Revealing Proven Methods for Profiting in the Market
Author: Franklin O. Ochoa Jr. Categories: Technical Analysis, Day Trading, Auction Market Theory
Quick Summary
A comprehensive guide to pivot-based trading that integrates Market Profile concepts (value area, point of control, volume at price) with multiple pivot calculation methods (floor pivots, Central Pivot Range, Camarilla equation). Ochoa frames markets through the auction process lens, covering market types, developing value areas, virgin levels, and multi-timeframe pivot confluence zones for high-probability trade setups.
Detailed Summary
Franklin O. Ochoa Jr.'s Secrets of a Pivot Boss (2010, 311 Publishing) is a deeply practical trading book that synthesizes multiple pivot-based methodologies with Market Profile concepts into a unified framework for intraday and swing trading.
Chapter 1: Understanding Markets establishes the Auction Market Theory foundation. Ochoa explains the auction process by which markets discover fair value through the interaction of buyers and sellers. He categorizes market participants into types of buyers and sellers, introduces the concept of recycling market days (how one day's profile influences the next), and defines the major types of market days (Normal, Normal Variation, Trend, Double Distribution, and Non-Trend).
Chapter 2: Engaging the Setup covers candlestick-based entry signals: the Wick Reversal, Extreme Reversal, Outside Reversal, and Doji Reversal setups. These provide the tactical triggers for entries within the broader framework.
Chapters 3-4: The Money Zone introduce Market Profile concepts. Chapter 3 covers the Point of Control (POC, the price with the highest volume), Value Area (the range containing 70% of volume), Developing POC and Developing Value Area (how these levels shift intraday), and Volume at Price. Chapter 4 advances these concepts with the Open in Relation to Value and Range (a key Market Profile concept for assessing early-session behavior), Value Area Relationships (how today's value area relates to yesterday's), Value Area Width analysis, Virgin Money Zone levels (untested POC and value area levels that act as magnets), the Unchanged VPOC Relationship, Virgin Volume Point of Control, and using Volume at Price analysis within trending markets.
Chapters 5-6: Floor Pivots and the Central Pivot Range cover the mathematical formulas, application methods, pivot trend analysis, and the Breakaway Play for standard and expanded floor pivots. The Central Pivot Range (CPR) section introduces the Developing Pivot Range, two-day pivot range relationships, pivot width forecasting, the Pivot Range Histogram, and the Magnet Trade.
Chapters 7-8: The Camarilla Equation present an alternative pivot calculation method with its own standard and expanded formulas, third-layer reversals, fourth-layer breakouts, the Developing Camarilla Three indicator, hidden layers, and Camarilla-specific trend analysis.
Chapter 9: Higher Timeframe Pivot Analysis extends all pivot methods to weekly, monthly, and quarterly timeframes, including long-term pivot width forecasting and long-term pivot trend analysis.
Chapter 10: Multiple Pivot Hot Zones is the book's synthesis chapter, demonstrating how confluence between multiple pivot types (floor, CPR, Camarilla) and multiple timeframes creates high-probability "Hot Zones" for trade entries. The power of confluence is the book's central practical insight.
This book qualifies as Auction Market Theory material due to its extensive treatment of the auction process, Market Profile concepts (value area, point of control, volume at price, TPO-related developing levels), and its framing of all pivot analysis within the context of market-generated information about fair value and directional auction.
