Livermore Pivot & Volume Confirmer | PMR Military Trading

The pivotal point (关键枢纽点): Livermore bought only when price cleared a well-defined base on expanding volume, and added only while the position proved him right. This tool computes that pivot, tests whether volume actually confirms it, and builds a pyramid ladder that never expands your original risk — the constraint most people drop when they scale in.

STEP 1 The Base

Base high — resistance ($)

Highest close of the consolidation. This defines the pivot.

Base low — support ($)

Weeks of consolidation

Livermore distrusted bases under a few weeks — too little accumulation.

STEP 2 Volume Confirmation

Average daily volume during the base (shares)

Volume on the breakout day (shares)

A breakout without volume expansion is the classic false move.

STEP 3 Risk

Account equity ($)

Max account risk on this idea (%)

Total across ALL pyramid units — not per unit.

Initial stop ($)

Below the pivot, typically inside the upper half of the base.

SIGNAL Is This a Livermore Entry?

Metric	Value
Pivotal point (entry trigger)
Base depth
Volume vs. base average
Risk per share
Total dollars at risk

PYRAMID Scaling Ladder

Livermore added on strength, never into weakness, and moved the stop up with each unit so total risk stayed constant. Each row assumes the stop rises to the previous entry.

Unit	Entry	Shares	Stop after add	Risk if stopped

⚠️ Before you use this

Livermore died bankrupt. That is not a rhetorical flourish — it is the single most important fact about this method. He made and lost several fortunes using exactly these rules, and the losses came from abandoning his own risk discipline, not from faulty pivot analysis. Covered in Reminiscences of a Stock Operator Ch. 5 in Classic Books.

This is a hedging/satellite technique, not a retirement core. Concentrated breakout trading amplifies whatever edge you have — including a negative one. It belongs, if anywhere, in a small sleeve outside a low-cost index core, and in a tax-deferred account given the turnover.
The tool cannot tell you whether the base is real. It calculates geometry and volume ratios from numbers you type in. Identifying a genuine accumulation base is a judgment it does not make for you.
Pyramiding magnifies both directions. The ladder below holds total risk constant only if you actually raise the stop as shown. If you add without moving the stop, you have quietly multiplied your risk — the most common way this method destroys accounts.
Volume data quality matters. Consolidated tape, dark pool prints, and index-rebalance days can all distort a volume ratio without indicating real accumulation.

📈 Livermore Pivot & Volume Confirmer

STEP 1 The Base

STEP 2 Volume Confirmation

STEP 3 Risk

SIGNAL Is This a Livermore Entry?

PYRAMID Scaling Ladder

⚠️ Before you use this