Forex Pivot Point Trading
Today I'd like to discuss a forex trading system that we use regularly.
This is a system that we use daily and is pretty low risk and the risk/reward ratio is excellent. It is based on the daily pivot points which we add to our charts, you can either get the indicator for Metaquotes charting or you can use the pivots calculated here Mataf.net pivot points.
The idea ia that the currencies tend to hit these points and and the retrace from them, they are particularly powerfull when a trend is presnt and the pivot point coincides with other support/resistance points, such as Fibonacci numbers, prior day high/low and strongg trend lines. In any event it is almost always possible to make something of these points even if only 10 pips. The strongest points are S1, S2, S3 and R1, R2 and R3. The daily pivot point itself can be an area of some noise as trader jockey for positions around it and the M points are weaker but worth observing. This trading system is easy too understand and many pit traders use it so it's a case of self fulfilled prophecy and worth observing. In the video below I show how it works, please check it out and feel free to ask and/or comment. Just to remind you that I am a great believer in full focus and concentration and I always meditate for an hour prior to starting my trading day, this has improved my results dramatically, please check previous posts for references.
I am writing this on May 08 in the London morning as we have the Canadian Employment and US employment figures later and the market tend to be choppy prior to the announcements. So watch out for the figures later and expect some volatility. This video was published on May 01 and if you've already seen it, perhaps watch it again on the light of the trading system described above. If you have any questions about the set up or need to find the MT4 indicators I use, please leave a comment with your email address and I'll get back to you.
Have a mega day GT
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