Forex day trading strategy for pivot point traders

Forex traders face all kinds of problems when they trade. Some traders have difficulty identifying the main trend, others have problems entering the market, but what if you developed a trading strategy that would solve both problems? Traders, this is Mario and if you stick In just a few minutes I will share with you a great day trading strategy that will keep you on the right side of the market.

Forex day trading strategy for pivot point traders

The corrupt strategy relies on the pivot points of the leading indicator and the accumulation and distribution line, which is a volume-based indicator that not many traders use. Let’s dive right into the strategy and see how it works. Here is the first rule of this strategy we aim to buy at the central pivot point in an uptrend. Sell ​​at the central pivot point in a downtrend.

Central Pivot Point in Forex

The central focal point is the most important part of the whole. Setting the location of the main pivot point on the chart is important information that you should be aware of because there is a high probability of hitting it. Have you ever wondered why pivot points are so popular among traders? This is because pivot points are an accurate indicator and most market participants monitor and trade these Key levels.

Part of what makes the pivot point so reliable is the fact that it is completely price-based. In our strategy, we will consider the central pivot point as the intraday equilibrium point. Between buyers and sellers in this area, we will assume that the greatest amount of trading volume is occurring now. This is how I read the central pivot point in our setup if the price is above the central pivot point.

Expectations are bullish in the Forex market

I consider the outlook to be bullish and considered taking long positions only if the price is below the central pivot point, I consider the outlook to be bearish and only look to sell the market if the price drops below the pivot point, the first target will be s1 and if the price continues to fall the next target will be s2 if The price has risen above, but the first target is R1, and if the price continues to rise, the next target is R2. This strategy is very simple and is one of the most powerful ways in which you can use pivot points.

Using the central pivot point at the beginning of the day, we already know at what price we will enter the market, we just need to write the market and enter in the direction of the main trend but how do we define the main trend with the accumulation and distribution line? Here comes the second rule of this strategy where we identify the main trend with the intersection of the line Advertisement.

Long-term moving average

From my experience a long-term moving average added on the announcement line will work better than a short-term moving average Now, here is how to take signals we aim to buy at the center of the pivot point if the intersection of the announcement line and the 200 EMA indicates an uptrend.

This means that the 200 EMA is below the announcement line and we also aim to sell at the central pivot point. If the intersection of the announcement line and the 200 EMA indicates a downtrend, this means that the 200 EMA above the announcement line is very important, we are only receiving signals around the pivot point, these are The main rules of our system, here is the EUR/USD on the 15-minute chart in this chart.

Trade Forex during a downtrend

We had four trading days during which we had a small range downtrend and an uptrend during the first day. We had a buy signal generated in the first part of the day as the price rejected the central pivot point and the intersection between the announcement line and the 200 EMA indicated an uptrend during the New York session, and we had a Sell ​​signal as the price broke below the central pivot point and the 200 EMA crossed above the 80 line on the second day.

The price did not bounce back to the central pivot point so we did not open my new position on the third day which provided a short signal during the London session. You can see the price closing below the central pivot point movement confirmed by the AD line and the intersection of the 200 EMA in the latter part of the day. This system generated a buying opportunity as the price broke above the central pivot point and the AD line crossed above the Exponential Moving Average.

The opportunity to enter for a long time in the Forex market

During the fourth day, we had two opportunities to go long in the market when the price bounced back to the central pivot point, the first signal was generated at the end of the Tokyo trading session and the next signal was generated during the London trading session, here is another signal for example, the US pound this time we have five trading days During which at least three days trading occurs in a range.

Please keep in mind that you have to adjust the time frame in the previous chart, we used a 15-minute time frame on this pair we used a 30-minute chart you should test it again and see which time frame provides the highest probability settings.

Forex market price decline signal

On the third day we had two good signals as the price pulled back to the central pivot point, notice how the announcement line moves lower and lower which confirms the downtrend of the fourth day started with a short signal below the central pivot point bid on an excellent trade, the end of the New York session brought a buy signal above the pivot point Centrality also confirmed by the announcement line at the 200 EMA.

The fifth day was a no-trading day where the price reached new highs and failed to bounce back to the zone by zone which means around the central pivot point. Now, I hope you are convinced of the strength of this setup and you will be on the right side of the market most of the time. Of course, you will bear some losses. But if you stick to the rules at the end of the week you will make a profit.

Trade Forex around a pivot point

Remember to only trade around a central pivot point, stick to this important role as it will benefit you in the long run. You will tend to place your trades in other areas of the chart but my advice is to be disciplined and enter the market at the central pivot point.

Take part of your profits at S1 or R1 levels and let the trading work at full capacity by moving your stop loss to the break-even point, testing other currency pairs or even cryptocurrencies, and finding out the appropriate time frame for them. It is very important not to trade currencies with this system because the advertising line does not include gaps in its calculation and the signals will not be 100% reliable.