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Scalping system #8 (1 minute Scalping with Pivot Points)

The idea behind scalping at Pivot levels is simple. Pivot points are excellent levels of support and resistance. The moment price comes and touches them it bounces off like a rubber ball. Why not benefit from it?

The rules for scalping with pivot points in Forex are simple:

Calculate Daily pivot points for your favorite currency pair. For calculation use data from 5 pm Eastern time to 5 pm next day Eastern time.

Sit and watch 1 minute chart. Be patient. Let price touch any of pivot point lines, or come at least on pip away from it. Believe me, your patience will pay off. The price do touch pivots 90% of the times. 90% is a lot. Enter with larger than you would regularly do order, but be reasonable.

Set stop loss 3 pips + spread on the other side of the pivot line.
Take profit once available - I would usually close my trade within the first completed 1 minute candle and as soon as I'm profitable.

That's it.
Enjoy scalping with pivots, it's fun which brings profits along!



Alex Wakemann,
Forex scalper at
http://forex-strategies-revealed.com

Hi Edward,
How many pips is your usual profit target and do you have an estimate of what percent of the time it bounces off pivot points enough to be a profitable trade? Also have you looked into using this same trading strategies with Fibonacci levels?
Thanks,
Nick

Hi Nick,

I use +4 to +6 pips target (excluding spread).
Fibonacci levels, yes, tried those. The problem is that it is not always easy to define the right Fibonacci top and bottom, therefore I would count less on Fibs, while with Pivots it is much more obvious.

Alex Wakemann

Hello Alex!

My doubt is how should we treat the pivot points i.e should we buy if the price touches a pivot line from top and sell if it touches the line from bottom or should we place a trade once the line is broken and go in the direction of the break?

Thank you.

KK

Hi KK,

I buy if the price touches pivots descending from above and sell if the price rises to pivots from below.
However, I don't use this method further. If the price breaks through pivot levels I don't go with it.

Alex

Thank you Alex.

KK

#I buy if the price touches pivots descending from above#

Sorry Alex, but I still don't get it. Why do you go long when the price drops? Do you bet on a retracement? Shouldn't it be better to go short (=sell)?

Peter

Hi Peter, I'm playing on bounces off the levels, which happen regularly. And that's exactly the way I do it. If the price, say, rises and reaches R1 level I sell, expecting the price to bounce back down for a short period of time. I do not care that it's been trending up, I play the R1 - which is resistance level, and resistance means it is going to resist :)

Alex

Hi

I have the ability to watch the market all day so I think this would be a good method for me to use. Could you go into more detail on how to plot the pivot points. I downloaded a pivot point calculator, but I am not sure what to make of all the info it says. I put in the data for the Euro/USD in the calculator and this is what came out. Which are the points and how do I plot them on the chart?? It only says PP which I assume is Pivot point, one time. Are the other letters pivit points too ie r3 m4 etc?? It would be great if you could post an example of a past day with all the points on the chart.

Thank you,
JJ

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