The Simple Foreign Exchange Pivot Points Trading Strategy

The Daily poins.ex4 indicator can be utilized to establish several exchanging strategies. The technique utilized the blue pivot line as the focal point of the exchange.

Features

1. The daily pivot points.ex4 indicator with default settings is the only MetaTrader 4 indicator required.
2. The recommended time frame for trading with this technique is one hour.
3. Applicable on any endorsed trading sessions. Though it depends on when the indicator displays on the chart.
4. Works best on any currency pairs.

The Technique

The pivot points allocated by the indicator will work as areas of support and resistance. At this moment, any pivot can be utilized. This function more favorable circumstances than simply utilizing the blue pivot line. The fundamental is to utilize the aggression of the price candles at the pivot to identify whether to purchase or auction.

An Auction Instance

Purchase Rules

Position a purchase order when the following conditions have been observed:

1. Price candle moves from the brown pivot line, which is a pivot support. Frequently, the prior candle will have shifted off this line, so the essential to exchange is to allow shift to occur, then exchange at the entry of the next candle.
2. If the candle that creates the shift ends higher up the pivot support, then it would be smart to allow a minor pull back to the line before positioning the long entry.
3. Position stop-loss five to thirty pips beneath the pivot support line on which exchange entry is established.

Take-Gain for Purchase Entry

Position a take-gain or an exit if the following condition is observed:

1. The next pivot line higher up the pivot support (the yellow pivot) is the closest TP point. Nevertheless, if the price candle’s shift is so firm as to break this line and end on top of it, then the next pivot on top of it becomes the new gain aim. This is the situation observed on the chart.

Auction Entry Rules

Position an auction entry rule when the following is observed:

1. Frequently, price would have been denied at the pivot resistance line. Once this happens, you can position a short exchange at the beginning of the next candle.
2. An auction greatest extent entry is utilized if the prior candle’s is several pips beneath the resistance after that candle has analyzed the pivot without shattering it.
3. For the stop-loss, position five to thirty pips on top of the resistance pivot line.

Take-Gain for the Auction Rules

Position a take-gain or an exit if the following condition is observed:

1. As anticipated, the first pivot line beneath the resistance should be utilized as the take-gain. Nevertheless, the candle broke the yellow pivot borderline. Thus the next TP aim should be brown support pivot borderline.

Utilize this strategy at your own risk. WindsorForex.com cannot be responsible for any losses associated with utilizing any strategy presented on the site. It’s not recommended to utilize this strategy on the real account without testing it on demo first.