Be sure to backtest and demo trade any new strategies before live trading them. If you have any questions about these strategies or would like to suggest others, please leave a comment below. I read your review on DTFL , personally I do work full time, but I do have access to my phone so I can use MT4 during this time, to a reasonable extent.

I was just wondering if you think it would suit me? No problem. I used to have a contact form on the site but I got a lot of spam, so I got rid of it. You can always contact me on Facebook or by leaving a comment as you have.

To answer your question, I would recommend DTFL to any Forex trader that is looking for a profitable trading system, as long as you can check your charts and adjust the levels that we trade stop runs from throughout the London or NY session. If you do decide to go with DTFL, you might want to look into the DTFL Pro EA. Hi Chris — thanks for the notes on Pivot Point strategies.

Warm regards from South Africa Sylvester. Hello again, Sylvester. Thanks for the comment. Hi Chris, Thank for your insight on these strategies. May I know which time frame will you base these on? Is there a significant difference between LTF vs HTF as the R and S are all the same no matter which TF we are using. I see it as either getting in early or late and thus also the SL being more or less. I trade on 15M to 1D time frames. Everything is more significant on the higher time frames.

Plus, the spread is a smaller percentage of the trade cost on higher time frames. Traders generally trade the lower time frames to get more trade opportunities. The exception is trading systems like Day Trading Forex Live , where we use the 15M time frame to get a more detailed look at how the smart money is moving the market.

That being said, if the market is going to move as you predict, you will typically get a better buy or sell point on the lower time frames, like you mentioned. Chris, What a book. Well done. Loving it. Do you wait for price action signal before entering a trade? Thanks for the kind words, Anthony. Most of the trading that I do today is with the Day Trading Forex Live system. thank you Chris for the Pivot Point strategies. The Pivot point Reversal strategy proves to work best for me.

Hello Chris , Have you ever tested on which time frame the pivot points are the most accurate. I usualy trade daily, 4hrs 1hrs. Thank to share,,,, Robert. The Best Reward-to-Risk Ratio The Bearish Engulfing Pattern How Much Do Forex Traders Make? Support and Resistance eBook Fibonacci Trading Strategy eBook Account Growth Calculator. START HERE BLOG DOWNLOAD REVIEWS MY TRADING SYSTEM.

Tweet 6. Share Related Posts. Hey Myles, No problem. There are pros and cons to it, but some of the guys at DTFL are using it with success. Warm regards from South Africa Sylvester Reply. Many thanks for sharing Chris.

The concept is this as technical analysts we are trying to use past price behaviors to help us indicate future price direction. But here we are not trying to predict the future we just want an idea of where the price can go in a given period based on where they have been. In pivot points trading pivot points is most important and it helps us to catch overall market sentiments for the days. If the price break through the pivot points to the bottom then you should start selling the stock.

The price being below the pivot points would signal bearish sentiments. This is why you cannot simply buy when the price is above the pivot points or sell when it is below it. Instead, if you choose to use pivot points analysis in this way, you should combine it with another indicator to help you determine overall market sentiments. The above chart is of the nifty index. This image illustrates bullish trade taken based on pivot point breakout trading strategy.

The first trade is marked on the chart when the price breaks the R1 level and closed above it. We go long and we place a stop-loss order below the R1 pivot level. As the price closes above the R1 level, the price rises sharply with high momentum. We told the trade until the price reaches the next pivot level R2, or R3 it may experience resistance near the higher pivot level.

Breakout of this pivot is very critical for the trend to continue otherwise price can reverse its momentum. Price while breaking through R2 presents us with other opportunities to enter into another long trade. To identify pivot point breakout trade, you should be looking for a breakout of the pivot level that can either be a support level or a resistance level.

For a long position, one can trade when the price breakout through a pivot point level. This breakout will most likely occur in the morning. If the breakout is bearish then you should initiate a short trade, after the price break support level. While trading a breakout trade, you should not forget to place a stop loss, this way your trade will always be secured against unexpected loss. If one entered a long position after the price break R1, stop loss will be below R1 and the next immediate target will be R2.

Pivot points are a technique used by a trader to help determine potential support and resistance area. There are four main ways to calculate for pivot points: standard, woodie, camarilla, and Fibonacci. Pivot can be extremely useful in stock, commodity, forex because usually, the price fluctuates between these levels. Most of the time price ranges between R1 and S1.

When trading using technical analysis , what matters more than anything else is that you have the right strategy which will enable you to spot profitable entry and exit opportunities effectively. There are various indicators that traders use for this, such as trading based on the trends, candlestick patterns, and using statistical indicators such as Bollinger bands.

However, the most reliable indicator among these is the support and resistance levels to trade. This is generally done through the use of pivot points trading. Before you begin to understand pivot points, you need to understand what support and resistance levels for a stock are. These levels are both different price points that represent the range in which the stock generally fluctuates. This will create an excess demand in the market, thereby pushing up prices. This then means an excess supply of the stock in the market, and the bears are in power, resulting in the stock price falling.

Using the support and resistance levels along with the stock data for the previous day, pivot points can be calculated. Since they rely on the data from the previous data, each day has its own unique pivot points, making it a very exclusive trading opportunity.

These levels that are termed pivot points are then used as frameworks to determine the ideal entry and exit points and the ideal stop-loss and take-profit points for the trades. NOTE: You can get the best free charts and broker for these strategies here. If you wish to trade equities through pivot point strategies, several steps are involved with this process. Even though most trading platforms and software already have built-in calculators for pivot points, you need to understand how they are calculated so that you can also do them yourself if needed.

Then, you need to know how to trade using pivot points optimally. There are two main strategies that traders use most commonly: the breakout trading strategy and the bounce trading strategy. The first pivot point is the Basic Pivot Level PP , which is the middle point on the chart, around which all the other points are centered.

This point represents balance in the market, at a point where the bullish and bearish forces are in equilibrium. If the price moves above the PP, then this indicates that the bulls dominate the market; if the price falls below the PP, this is an indicator of a bearish market.

Each of these represents a different level and helps identify stop-loss and take-profit points for a particular trade. When plotted on the price chart , this should give you 7 parallel lines. It is important to note here that each resistance and support level calculation uses the PP value. Therefore the PP is the central value around which all the other values revolve.

An incorrect PP value will also result in your other values being wrong; hence it is important to use the right values while calculating the Basic Pivot Point.

Pivot points enable you to establish the different support and resistance levels for a stock based on its movements on the previous day. Once you notice a stock approaching either a support or a resistance level, there are two things that the stock could do. If the former happens, you should trade using the bounce strategy. However, in the case of the latter, the breakout trading strategies must be used.

If the stock price breaks through a particular level, say the R1 level, this indicates a strong bullish trend on the stock. In this case, you should then open a trade with a stop-loss at a level just below the R1 price. These breakouts most commonly occur in the morning when the market opens, and the activity is maximum at that point. It is important to note that every trade using pivot point breakout strategies should be made using a stop-loss to avoid running into huge losses.

Once you have opened a trade at the point where a breakout happens, you should then wait for the price to at least touch the next level, R2 in this case, before you close the trade. However, you could even hold out to see if the price touches even higher levels, such as R3 or above.

Once the trade crosses R2, however, you can close the trade at any time. It would help if you had an ideal risk-reward ratio for each trade as a trader that will decide where your stop loss is and where you close the trade and book a profit. Your risk-reward ratio on this trade would be as desired.

When the price touches a particular support or resistance level, it might not always break through that level and continue on its trend. Occasionally, you will see that the stock touches a particular level, reverses its trend, and starts moving in the opposite direction. For example, say a stock price touches the S1 level. It might choose to turn around and begin moving upwards until it reaches R1 when it starts moving down again. If this happens, then this means that the first stage of the support and resistance levels are holding, and you should use the bounce trading strategies to trade.

Say a stock price touches the S1 level and begins moving upwards. In this case, you should buy the stock and set your stop-loss at a level marginally lower than the S1 level. You should then hold the stock until it touches the next level, at least PP in this case.

After this, you can sell the stock at any point when your risk-reward ratio is satisfied. It is important to note here that the price might not always be bouncing between support and resistance levels; it could also choose to bounce between two support or two resistance levels.

For example, the stock price might reverse trends and bounce between the R1 and R2 levels, and even in this case, the same strategies must be applied. While the strategies used by traders to trade on these points are quite similar to classic pivot point trading strategies, the calculations of the points and levels differ.

These points are more commonly used than classic pivot points because they are a better indicator of support and resistance levels; however, they are also a bit more complicated to calculate and understand. To trade using the Fibonacci pivot points, you will need to understand how Fibonacci indicators are calculated, what Fibonacci levels are, and how you can effectively trade on them.

The Fibonacci sequence is a pattern of numbers where every number is the sum of the previous two numbers. The series goes 1,1,2,3,5,8,13, Fibonacci numbers are also used in stock trading to calculate retracements, indicating how much a stock will bounce back in any given conditions. The three main Fibonacci intervals are the It will then bounce back by either 24, 38, 50, or 62 cents.

Traders very commonly use these intervals to set target profits and stop losses. Of the four intervals, the most crucial ones that traders most often monitor in pivot trading strategies are the The intervals can be calculated as follows:. While carrying out weekly pivot trading, the support and resistance levels used are calculated based on the close, high, and low prices of the previous week.

However, pivot trading strategies are also commonly used in forex trading, where trading runs 24 hours. In this case, according to the New York markets, the closing time could be considered, or in some cases, the price at pm on Friday when the market closes for the weekend is also considered.

While trading weekly pivot points, you can let your positions stay overnight and transfer them from one day to another, even though that is not something that day traders often do. However, since many candles are needed to spot when a breakout or bounce is happening and to identify and set stop-losses, the normal candle timeframe is 15 or 30 minutes, or an hour at best.

Anything greater than that does not provide enough candles for the strategy to be used effectively. In the forex markets where trading continues 24 hours a day, traders either use midnight as the close or use the price at 4 pm New York time as the closing price for their calculations. Obviously, this affects the calculations of the pivot points and the consequent support and resistance levels; therefore, you must take care to remember what prices you use and stick to them consistently.

This will also make a difference in how long you can hold your positions and what targets you will set for your trades. In intraday pivot trading, just like with weekly pivot trading, it is important for you to have many candles to spot patterns easily. Firstly, presentation matters. To avoid this, you should take care to color-code your lines.

The most commonly used method is to color the PP line a certain color normally black , the support lines in one color, and the resistance lines in another color. This will enable you to spot patterns easily and keep you from being confused later. This is important for all trades, but it becomes absolutely crucial when trading using pivot points.

This is because there is always a good chance of what looks like a breakout to turn out to be just a bounce. If this happens, you will not want to be left holding the bag on a loss making trade; therefore, stop-losses are crucial because they minimize your losses and keep the risk-reward ratio within the required parameters.

This means that irrespective of what happens, stick to your rules. Do not move the stop-loss on a trade no matter what happens. There will always be more opportunities and more ways to profit, and it is not worth compromising your discipline ever. When you open a trade, wait until it touches the next price line or hits the stop-loss before closing the trade. Do not close the trade before that. All of these traits are of an experienced and disciplined trader, and that is what you need to profit in the market consistently.

It is easy to make money trading, but discipline is key to make money trading over a long period of time. Nishit is an accounting and finance student at the University of Warwick who has written for a range of blogs and websites including Fortune companies. Enter your name and email below to get your free PDF. NOTE: You can get your free pivot point trading strategy PDF below.

Table of Contents. Nishit Kumar. He has a passion for the financial markets and has been a keen investor since he was Get Your Free PDF Pivot Point Trading Strategies. Get Free PDF Now.

It is easy to make money trading, but discipline is key to make money trading over a long period of time. The series goes 1,1,2,3,5,8,13, I usualy trade daily, 4hrs 1hrs. Enter your name and email below to get your free PDF. Everything is more significant on the higher time frames. Share Share on Facebook Share on Twitter Pinterest Email.

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