The Trading Steps You Need to be Sure of

Trade asset is the GBP / USD or other currency pairs with stable intraday volatility. The timeframe is H1 and above. The trading session is Europe, Europe-America. The indicator is DailyPivot_Ind2.

The indicator builds additional Pivot levels that considerably increase the accuracy of signals. The moment when the hour candle punches (or concerns) R0.5 resistance level (in case of purchase) or the level of support S0.5 (in case of sale) is the point of entry. We open the transaction, without waiting for closing of an hour candle.

  • In this Forex Pivot Points trading strategy TakeProfit we put on the R2 level (in case of purchase) or S2 (in case of sale), but it is recommended to use a trailing of 15-20 points. StopLoss put at the S0.5 level (in case of purchase) or R0.5 (in case of sale).

Forex pivot strategy

In case the price achieve the R1 level (or S1), we close 50% of amount of the transaction and transfer an open line item in the black.

It is recommended to open no more than two transactions a day on this Pivot Points Forex strategy. If after creation of pivot-levels it turns out that the price is not between the S0.5 and R0.5 levels, then it is necessary to wait until the price is included into this corridor and only after that it is possible to wait for breakdown of the S0.5 and R0.5 levels, and, respectively, to open the transaction. You need to have a use of the crypto comeback pro there.

The Use of the forex Pivot Point for You

Several practical notes

Traditionally for Pivot Point Forex trading strategy two options are offeredbreakdown of level and trade in the range. The same level can play a role of strong resistance (there is a price release) or a support role when the price punches level, and then during correction relies on it.

Forex pivot points strategy

Anyway, if the market has opened day above a rotation point, then it is necessary to give preference to purchases. And, on the contrary, when opening the market below the central levelwe consider signals for sale.

Standard Pivot Points Forex strategy is used only one day lines therefore this technique is the most useful for intraday trade. The Pivot levels can be used as the price filter not to buy under the strong level of resistance and not to sell about supportit also actually for a scalping.

The Pivot lines can be applied as addition to trend medium-term strategynot only for an entrance to the market, but also for maintenance of line items. If daily to update the target levels taking into account the latest events, then quality of signals will significantly increase.

Conclusion

Classical Pivot Pointsstrategy of trading Forex is still current, but the algorithm of calculation is not really accurate because of the simplicity. Any speculative throws of the price or low volatility, for example, in the thin market, can show inadequate max / min of last day and further essentially influence on calculation of the current point of a turn. Therefore for position opening the situation of breakdown or a turn from the Pivot Points lines shall be confirmed by other indicators surely. Rather reliably the Pivot Points indicator works in a sheaf with all types of oscillators, for example, standard stochastic.