How to Day Trade Using Pivot Points?
Description: When it comes to intraday trading, Pivot Points are an indispensable tool. Developed by Floor traders at a time when Pit trading ruled the roost, the system has stood the test of time and is still being used by many electronic traders throughout the world.
Pivot Points help us in mapping the markets. They pave the pathway for the price to follow. It only takes our good judgment to gauge the situation and pull the trigger. Here we will take a look at how to day trade using Pivot Points. The very fact that Pivot Points are widely used makes them work!
Opening above Pivot (P): If PA opens above Pivot Point (P) (or the Typical Price), it shows inherent strength in the instrument; look for buying opportunities. Wait for the prices to retrace to P. Look for candlestick reversal patterns. If P holds, go ahead and buy the pair with a target set at Resistance 1 (R1).
Opening below Pivot (P): If PA opens below Pivot Point (P) (or the Typical Price), it shows inherent weakness in the instrument; look for selling opportunites. Wait for the prices to retrace to P. Look for candlestick reversal patterns. If P hold, go ahead and sell the pair with a target set at Support 1 (S1).
This has a high win rate, related to only day trading price action from Pivot Point to either S1 or R1. This can be a winning strategy with proper lot size and risk management in your plan. In example 15 minute chart, a possible up to 70 pips noted on this sell trade, from PP to S1. You can use Williams alligator and session indicator to make this day trading a lot better. Good Luck.
As with all strategies: back testing will help you in the confidence in utilizing during your trading.
Description: When it comes to intraday trading, Pivot Points are an indispensable tool. Developed by Floor traders at a time when Pit trading ruled the roost, the system has stood the test of time and is still being used by many electronic traders throughout the world.
Pivot Points help us in mapping the markets. They pave the pathway for the price to follow. It only takes our good judgment to gauge the situation and pull the trigger. Here we will take a look at how to day trade using Pivot Points. The very fact that Pivot Points are widely used makes them work!
Opening above Pivot (P): If PA opens above Pivot Point (P) (or the Typical Price), it shows inherent strength in the instrument; look for buying opportunities. Wait for the prices to retrace to P. Look for candlestick reversal patterns. If P holds, go ahead and buy the pair with a target set at Resistance 1 (R1).
Opening below Pivot (P): If PA opens below Pivot Point (P) (or the Typical Price), it shows inherent weakness in the instrument; look for selling opportunites. Wait for the prices to retrace to P. Look for candlestick reversal patterns. If P hold, go ahead and sell the pair with a target set at Support 1 (S1).
This has a high win rate, related to only day trading price action from Pivot Point to either S1 or R1. This can be a winning strategy with proper lot size and risk management in your plan. In example 15 minute chart, a possible up to 70 pips noted on this sell trade, from PP to S1. You can use Williams alligator and session indicator to make this day trading a lot better. Good Luck.
As with all strategies: back testing will help you in the confidence in utilizing during your trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.