Pivot Buy Sell Trading

Pivot Buy Sell Trading

Support and Resistance Strategies

The Pivot buy Sell trading using pivot points to generate trading signals. Pivot points are a method of predicting support and resistance levels for the future.Using mathematical formulas the trader is able to know today, what will be the most powerful support and resistance levels tomorrow.

Don't worry, you don't need to calculate anything manually- there are indicators in any

trading platform that do that automatically.

If you are interested, here are the formula for Pivot calculation:

H – Yesterday's Highest Price

L – Yesterday's Lowest price

C – Yesterday's Close Price

P = (H + L + C) / 3.

R 1 = 2×P − L

S 1 = 2×P − H

R 2 = P + (H − L)

S 2 = P − (H − L)

R 3 = P + 2×(H − L)

S 3 = P − 2×(H − L)

Each of these points is a PIVOT POINT. The R points are Resistance levels that we will trade only with LONG trades, and the S points are Support levelthat we will trade only with SHORT trades.

Each day there are 5 pivot levels that we can trade. However we don't trade any pivot levels (it has to meet our filters).

First step is to confirm that the pivot level is strong.

We confirm that by demanding that price was in 30-25 pips distance from the pivot level at some point of the day. This makes sure that the pivot level is strong enough to trade:

After we confirm that the pivot level is good, we proceed by putting a trade order:

if the level is a RESISTANCE level we will enter a long trade when the pivot is broken, if the level is a SUPPORT level we will enter a short trade when the level is broken.

For long trades will put a buy order 1 pip above the level, and for short trades we will

put a sell order 1 pip below the order.

So if we have a Resistance pivot at 1.3119 the buy order will be placed at 1.3120

If we have a Support pivot at 1.3019 the sell order will be placed at 1.3018, and so on.

Stop Loss

We use a 20 pips trailing stop. This means that if price goes into +5 pips profit our stop loss will move 5 pips upwards, so the maximum price can go back before we exit the trade is 20 pips.

Take Profit

We exit half of the trade at +26 pips profit, and half the profit at +52 pips profit.

This is designed to get us in profit AND to take advantage of big moves.

Support and Resistance with candles

Support and Resistance with candles

Support and Resistance Strategies

Price action strategy

Support and Resistance with candles is a price action strategy.

Buy/Sell Trade rules:

#1 correct time to trade:

(A) UK Session 2:00AM 3:00AM 4:00AM.

(B) US Session 8:00AM 9:00AM 10:00AM.

We always start to look for a potential trade setup at the start of each

hour in either the UK session or the US session.

The best entry time is always within the first 30 minutes from the open of

the hour candle; however, we never enter a trade near the close of the

hour candle because price may reverse in the opposite direction.

After 40 – 45 minutes have past it is best to wait for the next hour candle

to open to look for another setup but it is ok to look for trades from say

9:00AM to 9:40AM.

#2 support & resistance:

You need price to open at the start of the hour and bounce off of a major

S&R level then reverse back up/down to buy or sell.

#3 entries:

Once the candle changes from red to blue by 1 pip you will buy.

Once the candle changes from blue to red by 1 pip you will sell as long as

it just bounced off of a major S&R level using the tools explained above.

#4 stops and profit targets:

Your stop loss will be 1 to 5 pips below the swing low of the current hour

candle you are trading.

Your take profit target will be the closest level of support or resistance

using either the Whole Numbers or Pivot Points or where price itself hit

in the past.

Financial Market: Indicies and Forex.

Time Frame 30 min or 60 min.

Whole Numbers or Pivot Points are lines of Support and Resistance.

Entry & Exit & SL & TP

Here is a sell trade example selling off of a major resistance “reversal

point” using 1 or more of the tools and experience you just learned from

watching the videos above:

Buy Trade Example

Instant Pip Profit

Instant Pip Profit

Support and Resistance Strategies

Prices at the upper Bollinger band are considered high and prices at the lower Bollinger band are considered low. However, just because prices have hit the upper Bollinger does not necessarily mean that it is a good time to sell. Therefore, just buying at the lower band and selling at the upper band is out of the question. By definition, price makes new highs in an uptrend and new lows in a downtrend, which means that they will naturally be hitting the bands. With this information in mind, our filter will require that buy signals occur only if the candle following the one that hits the Lower Bollinger band does not make a new low (white candle) and sell signals occur only if the candle following the one that hits the Higher Bollinger band does not make a new high (black candle). This type of candle is commonly known as an inside day. The best time frames to look for the inside days are daily charts, but this strategy can also be used on hourly, weekly and monthly charts. Combining inside days with Bollinger bands increases the likelihood that we are only picking a top or bottom after prices have hit extreme levels. As a rule of thumb, the longer the time frame, the rarer the trade will be, but the signal will also be more significant.

For Buy

1. Look for the currency pair to hit or come very close to hitting the lower Bollinger.

2. Wait for next candle and make sure that the next candle's low is greater than or equal to the previous candle's low and that the high is also less than or equal to the previous period's high. Basically it should be within the previous candle high and low. Also make sure the candle is while candle. If so, go long at the open of the third candle.

3. The initial stop is placed a few pips below the previous candle's low.

4. Trail stop on a closing basis with the 20-period SMA.

For Sell

1. Look for the currency pair to hit or come very close to hitting the upper Bollinger.

2. Wait for next candle and make sure that the next candle's high is less than or equal to the previous candle's high and that the low is also greater than or equal to the previous period's low. Basically it should be within the previous candle high and low. Also make sure the candle is while candle . If so, go short at the open of the third candle.

3. The initial stop is placed a few pips above the previous candle's high.

4. Trail stop on a closing basis with the 20-period SMA.

Instant Pip Profit

Instant Pip Profit reversal Trading with Bollinger Bands

The Straddle trade step by step

The Straddle trade step by step

Support and Resistance Strategies

The straddle trade step by step

1. We identify a day in which a major news announcement is expected – –one which is likely to move a specific currency.

2. We identify the time of the expected news release.

3. We observe the market activity as the date and time approach.

(We are looking for indications that the market is anticipating a serious move.

This would be indicated by the prices moving within a tight range for at least

5 – – 6 hours prior to the expected news release.)

4. We take note of the upper and lower bands of the range and establish resistance and support price levels.

5. We enter buy and sell orders 15 – – 20 is PIPs away, on either side of the resistance and support levels, thereby “ “ straddling” ” the market.

6. We enter stop loss orders for each of our opening orders to ensure proper equity management. Stop Loss orders should be no more than 5% of your equity on a trade, i.e. 25 PIPs.

7. We wait for the news release to move the market to our order price.

Once the market trades at our price, our order will be filled.

8. We now have to cancel the opening and stop loss orders that are no longer relevant and monitorour active trade.

9. We may now begin to move our stop loss order on the active trade in order to lock in profits (“ “ trail our stop” ”) – – though not too closely lest the market take us out on a t retracement wave.

10. When we reach our limit order, predetermined profit level or we notice the trend has broken, its time to take profits and close the trade. Remember to cancel the open stop loss order if it doesn’ ’t

automatically cancel.

The Straddle trade step by step

The pivots trade

The pivots trade

Support and Resistance Strategies

The pivots trade is a trading  system based on the pivots levels. The system can be traded on a wide variety of currency pairs but it works best on the GBPUSD, EURUSD, USDJPY, AUD/JPY and the AUDUSD currency pairs. The best time frame is 60 min or 30 min.

Indicators:

Pivot levels (today all trading platform have this tool);

50 EMA (exponential moving average);

MACD (8,17, 9);

RSI 814 period).

Rules the pivots trade

Buy

1. The current price candle to be above the 50 EMA.

2. The MACD to be > 0 level..

3. The RSI (14) > 50 level.

4. Entry when the current price candle is above or broken Pivot Points ( S1-S2-S3, R1-R2-R3,) .

Sell

1. The current price candle to be celow the 50 EMA.

2. The MACD to be < 0 level..

3. The RSI (14) < 50 level.

4. Entry when the current price candle is below or broken Pivot Points ( S1-S2-S3, R1-R2-R3,) .

Initial Stop Loss is placed below/above the closest/next Pivot Point level.

The Profit Target is placed at the nearest Pivot Point level.

For entry position to wait for the current candle to close then confirm the conditions.

The pivots trade

The pivots trade