The simple forex pivot points trading strategy utilizes the daily pivot points.ex4 indicator in establishing several exchanging techniques. We will observe how this indicator can present exchange opportunities while utilizing any pivot point accessible.
1. Daily pivot points.ex4 indicator with default setting is the only MetaTrader 4 indicator utilized in this trading strategy.
2. The recommended time frame is one hour.
3. Applicable on any time endorsed trading sessions. Though it solemnly depends on when the indicator signal displays on the chart.
4. The technique can be utilized on any currency pairs.
The Trading Strategy
The pivot points sketched by the indicator, will as act as zones of resistance and support. This time frame, any pivot can be utilized. This creates more opportunities that simply utilizing the blue pivot borderline. The fundamental is to utilize the performance of the price bars at the pivot to identify whether to purchase or to auction.
Purchase Entry Rules
Initiate a purchase entry rules when the following conditions are observed:
1. Price bar shift off from the brown pivot borderline, which is a pivot support. Occasionally, the prior bar would bounced off this borderline, so the fundamental to the exchange is to advocate the bounce to occur, then exchange at the beginning of the preceding bar.
2. If the bar that acts the bounce ends high up from the top of the pivot support, then it would be well-advised to advocate a mere pullback of the borderline before positioning the purchase entry.
3. For the stop-loss of the purchase entry, position five to thirty pips beneath the pivot support borderline on which the exchange entry is established.
Take-Gain for Purchase Entry
Position a take-gain or an exit if the next pivot borderline on top of the pivot support (the yellow pivot) is the closest take-gain point. Nevertheless, if the price bar’s shift is so firm as to break this borderline and end on top of it, then the next pivot on top becomes the new gain aim. This is the situation observed on the chart.
Auction Entry Rules
Initiate an auction entry rule when the following conditions are observed:
1. Frequently, price would have been denied at the pivot resistance borderline. Once this happens, you can position an auction exchange at the beginning of the next bar.
2. An auction limit entry is utilized if the prior bar’s end is several pips beneath the pivot resistance after that bar has certified the pivot without breaking it.
3. For the stop-loss of the auction entry, position five to thirty pips on top of the resistance pivot line.
Take-Gain for Auction Entry
Initiate a take-gain or an exit for auction entry when the following condition is observed:
1. Normally, the 1st pivot line beneath the resistance pivot should be utilized as the take-gain. Moreover, the bar broke the yellow pivot borderline. Thus the next take-gain aim should be the brown support pivot borderline.
The chart above displays the exchange establishment for purchase and auction entries.
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.