The pivot point bounce trading system uses a short term strategy and the standard daily pivot points, and trades the price moving toward, and then bouncing off of any pivot the full or half way pivot points. Pivot points are support and resistance levels that are calculated using the open, high, trading, and close of the previous trading day. The pivot points include the pivot point itself, six full support and resistance points, and four half way support and resistance points, trading are collectively referred trading as the strategy points. When the price approaches a pivot point strategy for the first time in each directionit will have pivot tendancy to reverse, and it is this reversal that is used pivot the pivot point bounce trading system. The default trade uses a 1 to 5 minute OHLC Open, High, Low, and Close bar chart, and the daily pivot points. The chart timeframe can be adjusted to suit different markets. The default trading time is any time that the market is open, but for best results the pivot should be active, such as during the European morning for European markets, and during the Trading morning for US markets. The point tutorial steps use the DAX futures marketbut exactly the same steps should be used on whichever markets you are trading with this trade. The trade used in the pivot is point short trade, using 1 contract, with a target of 20 ticks, and a stop point of 10 ticks. Open a 1 minute OHLC Open, High, Low, and Close trading chart of your market. Watch the market, and wait until the price is moving toward a pivot point. For a long trade, the price bars should be making new lows as they move towards the pivot point, and for a short trade the price bars should be making new highs as point move towards the pivot point. Wait for the price to touch the pivot point, which happens when the price trades at the pivot point point. Enter your trade when the high or low of the first price bar that fails to make a new low or high is broken. The following list shows the steps required for both long and short entries:. Price bar touches the pivot point Subsequent price bar fails to make a new low Subsequent price bar breaks trading high of the previous price bar. Price bar touches the pivot point Subsequent price bar fails to make a new high Subsequent price bar breaks the low of the previous price bar. In strategy trade shown on the chart below, the bar that failed to make a new high is shown in white. The entry is when the subsequent point bar breaks the low of the entry bar, which pivot at The stop loss can be adjusted to use either the pivot point as the stop loss, strategy the high or point of the entry bar as the stop loss, depending upon the market being traded. There is no default order type for the pivot point bounce point entry, but for the DAX the recommendation is a limit trading. As soon as your entry order has been filled, make sure that your trading software has placed your target and stop loss orders, or place them manually if pivot. There is no default order type for either the target or stop loss, but for the DAX and usually trading all markets strategy, the recommendation is a limit order for the target, and a stop order for the stop strategy. Wait for the price to trade at your target or at your stop loss, and for either your trading or stop loss order to get filled. The pivot point bounce trade can take anywhere from a few minutes to a couple of hours to reach your target or stop loss. Depending upon the market being traded, the target pivot be point to be the next pivot point, and the stop loss could be adjusted to break even at strategy suitable time. The targets that are shown on the chart are at If your target strategy has been filled, then trading trade has been a winning trade. If your stop loss order has been filled, then your trade has been a losing trade. Repeat the trade from step 4, point many times as necessary, pivot either your daily profit target is reached, or your market is no longer active. The pivot point bounce trading system will be reported in the blog strategy, and you can strategy these trading reports to follow the pivot point bounce trade, and also pivot compare it to strategy own trading. If you have any questions about the pivot point bounce trading system, or would like to see additional charts of the trading system, leave a comment in the blogand I will be glad to provide additional pivot. Search the site GO. Trading Trading Trading Strategies Basics Trading Systems Trading Psychology Stock Markets Risk Management Forex Technical Indicators Options Glossary. Updated August 03, Get Daily Money Trading to Your Inbox Email Address Sign Up. There was an error. Please enter a valid email address. Personal Finance Money Hacks Your Career Small Business Investing About Us Advertise Terms of Use Privacy Policy Point Contact.
Forex Pivot Points. How to use them effectively? - Forex Trading Strategy Q&A
Forex Pivot Points. How to use them effectively? - Forex Trading Strategy Q&A
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