How to Apply Pivot Points Effectively when Trading Forex ...

[educational] Stretgies for day trading based on Technical Analysis

[educational] Stretgies for day trading based on Technical Analysis

1. Breakout

Breakout strategies center around when the price clears a specified level on your chart, with increased volume. The breakout trader enters into a long position after the asset or security breaks above resistance. Alternatively, you enter a short position once the stock breaks below support.
After an asset or security trades beyond the specified price barrier, volatility usually increases and prices will often trend in the direction of the breakout.
You need to find the right instrument to trade. When doing this bear in mind the asset’s support and resistance levels. The more frequently the price has hit these points, the more validated and important they become.

Entry Points

This part is nice and straightforward. Prices set to close and above resistance levels require a bearish position. Prices set to close and below a support level need a bullish position.

Plan your exits

Use the asset’s recent performance to establish a reasonable price target. Using chart patterns will make this process even more accurate. You can calculate the average recent price swings to create a target. If the average price swing has been 3 points over the last several price swings, this would be a sensible target. Once you’ve reached that goal you can exit the trade and enjoy the profit.
https://preview.redd.it/0oj4a1xlvdh31.png?width=773&format=png&auto=webp&s=8f2aa07b0c7caeeb00c4f997c12e814abbd380da

2. Scalping

One of the most popular strategies is scalping. It’s particularly popular in the forex market, and it looks to capitalise on minute price changes. The driving force is quantity. You will look to sell as soon as the trade becomes profitable. This is a fast-paced and exciting way to trade, but it can be risky. You need a high trading probability to even out the low risk vs reward ratio.
Be on the lookout for volatile instruments, attractive liquidity and be hot on timing. You can’t wait for the market, you need to close losing trades as soon as possible.
https://preview.redd.it/dzaf7t1nvdh31.png?width=653&format=png&auto=webp&s=f3d96d74311de806c3809698df2a964e3eb4db5e

3. Momentum

Popular amongst trading strategies for beginners, this strategy revolves around acting on news sources and identifying substantial trending moves with the support of high volume. There is always at least one stock that moves around 20-30% each day, so there’s ample opportunity. You simply hold onto your position until you see signs of reversal and then get out.
Alternatively, you can fade the price drop. This way round your price target is as soon as volume starts to diminish.
This strategy is simple and effective if used correctly. However, you must ensure you’re aware of upcoming news and earnings announcements. Just a few seconds on each trade will make all the difference to your end of day profits.
https://preview.redd.it/z4r2o6covdh31.png?width=600&format=png&auto=webp&s=b054c77c4bc5978821e879eff73d613d728cb0cf

4. Reversal

Although hotly debated and potentially dangerous when used by beginners, reverse trading is used all over the world. It’s also known as trend trading, pull back trending and a mean reversion strategy.
This strategy defies basic logic as you aim to trade against the trend. You need to be able to accurately identify possible pullbacks, plus predict their strength. To do this effectively you need in-depth market knowledge and experience.
The ‘daily pivot’ strategy is considered a unique case of reverse trading, as it centers on buying and selling the daily low and high pullbacks/reverse.
https://preview.redd.it/4ya3txcpvdh31.png?width=776&format=png&auto=webp&s=f40216413b1376b2d6d5a67e4d09057f55be6ba1

5. Using Pivot Points

A day trading pivot point strategy can be fantastic for identifying and acting on critical support and/or resistance levels. It is particularly useful in the forex market. In addition, it can be used by range-bound traders to identify points of entry, while trend and breakout traders can use pivot points to locate key levels that need to break for a move to count as a breakout.

Calculating Pivot Points

A pivot point is defined as a point of rotation. You use the prices of the previous day’s high and low, plus the closing price of a security to calculate the pivot point.
Note that if you calculate a pivot point using price information from a relatively short time frame, accuracy is often reduced.
So, how do you calculate a pivot point?
  • Central Pivot Point (P) = (High + Low + Close) / 3
You can then calculate support and resistance levels using the pivot point. To do that you will need to use the following formulas:
  • First Resistance (R1) = (2*P) – Low
  • First Support (S1) = (2*P) – High
The second level of support and resistance is then calculated as follows:
  • Second Resistance (R2) = P + (R1-S1)
  • Second Support (S2) = P – (R1- S1)

Application

When applied to the FX market, for example, you will find the trading range for the session often takes place between the pivot point and the first support and resistance levels. This is because a high number of traders play this range.
It’s also worth noting, this is one of the systems & methods that can be applied to indexes too. For example, it can help form an effective S&P day trading strategy

6. Moving Average Crossover

You will need three moving average lines:
  • One set at 20 periods – This is your fast moving average
  • One set at 60 periods – This is your slow moving average
  • One set at 100 periods – This is your trend indicator
This is one of the moving averages strategies that generates a buy signal when the fast moving average crosses up and over the slow moving average. A sell signal is generated simply when the fast moving average crosses below the slow moving average.
So, You’ll open a position when the moving average line crosses in one direction and you’ll close the position when it crosses back the opposite way.
How can you establish there’s definitely a trend? You know the trend is on if the price bar stays above or below the 100-period line.

the source : https://www.daytrading.com/strategies
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some helphul common terms for forex traders

Common terms:

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Episode 313: How To Trade Pivot Points Like A PRO  Forex ... Mastering Pivot Points In Your Trading  Urban Forex - YouTube How to Use Pivot Point Forex Strategy For Trading Set Up? Pivot Points: What They Are and How to Trade Them Part 1 ... Pivot Points Trading Strategy (Best Forex Indicator) - YouTube Central Pivot Range (CPR) Indicator Explained - YouTube Pivot Point Trading Strategy  Forex Day Trading System ... Trading With Fibonacci Pivot Points Made Easy (Forex ... Trading Forex Pivot Points with Logic - YouTube

(PP)Central Daily Pivot Point = (High + Close + low)/3 . Once, investors find their central figures; they can calculate other higher or lower points of support and resistance. This strategy is most popular in forex market; as it is almost tailor made to fit into the foreign exchange scenario. Range-bound investors use pivot points forex trading to determine perfect points of entry into their ... The Pivot Point technique is a favourite amongst traders for its calculation of Intraday support and resistance levels.The way it works is that it determines a certain number of psychologically important levels that relate to a specific currency pair.. The most important level is the pivot point, if prices evolve above it, it means that we're in an upward trend. The Pivot Point Forex Trading Strategy. The following pivot point trading strategy has been around for a long time. It was originally used by floor traders. This was a nice and easy way for floor traders to have an idea of where the market was going during the course of the day using just a few basic calculations. The pivot point is defined as the level at which the market direction changes ... The price decreases to the central pivot point and it even closes a candle below. However, the candle is a bullish hammer, which is a rejection candle formation. This hints that the trade should stay open. Furthermore, the stop loss below S1 is still untouched. The price then starts a consolidation which lasts until the end of the trading day. When the next trading day comes, the pivot points ... Classical Pivot Points strategy of trading Forex are still actual, but the algorithm of calculation is not really exact 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 ... The central pivot point is the most important part of the whole setup. ... Forex Pivot Point Trading Strategy. This strategy is very simple, but it is one of the most powerful ways that you can take away from trading with pivots. The trading rules are straightforward: if we are in an upward trend, you will look to buy at support at either S1 or the main pivot point, with your target set at ... Pivot point trading is also ideal for those who are involved in the forex trading industry. Due to their high trading volume, forex price movements are often much more predictable than those in the stock market or other industries. The professional traders and the algorithms you see in the market use some sort of a pivot point strategy. In the old days, this was a secret trading strategy that ...

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Episode 313: How To Trade Pivot Points Like A PRO Forex ...

Pivot Point Trading Strategy Indicators and Template Download - https://app.box.com/s/pyxxhiv36tnpic7nl5vr0drup2cdqbdx Download All My Indicators FREE - http... Pivot Points Trading Strategy (Best Forex Indicator) https://www.forexelite.com Pivot Points are a popular indicator that many Forex traders will use in addition when price action trading. But knowing how they work and how to use them co... Pivot Points. http://www.financial-spread-betting.com/academy/Spread-betting-trends.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! In this video we... Fibonacci studies such as retracements, extensions, and projections are quite popular in the financial markets. But did you know that you could incorporate t... Trading Pivot Points With A Twist (Central Pivot Range Strategy For Forex & Stock Market) ... How To Trade Pivot Points In The Futures And Forex Markets - Duration: 39:30. I Am A Day Trader 46,293 ... Central Pivot Range (CPR) Indicator Explained // Pivot Points video #1: https://www.youtube.com/watch?v=jI6RzWzQ1Zc // Pivot Points video #2: https://www.you... Pivot Points are mathematical averages of previous periods. They are basically walls, barriers or support/resistance levels where price struggles to go throu... Welcome to the 10,000 Trades Show! You know I love pivot points and today I have another one for your review. I will show you how to identify this trade, whe...

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