FREE FOREX STRATEGIES

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.


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hers' another idea for the EA talked about earlier. so on the first touch, the EA could play off the bounce. but the second and subsequent times, the EA could play on the breakthrough. any thoughts?

Hi Phillip,

Any luck on the EA you were planning to develop for this strategy? Would be keen to take a look at it.

When I don't use Pivot points that are built in the platform, I calculate them manually.

There are lots of online calculators to ease the process, for example:

Pivot Point Calculator

In FXTrade platform from OANDA I use built in Pivot Points (the indicator should be chosen from the same tool box, where you take the trend line tool).

In MT4 I use a custom indicator: Auto_Pivot_mod.mq4

Regards,
Edward

Hi, what setting did you used for the Pivot Calculations.

For actionforex, they used
"Daily pivots are calculated from previous day's high, low, close which ends at 5pm est or 21pm GMT. "

I have several website which recommend GMT + 0 or GMT +5.

May i know the website that you use to generate the pivot? I am not using MT4 platform....

Thanks

You're doing it right.
On 1 min charts the daily pivot lines will be quite far from each other. We use Pivots, but only when price trades close to them. If price is far away, there is nothing to do.

Regards,
Edward

ok first i tried manually drawing Pivot but when i change to M1 i can only see one line and the other lines are way off the 1 M chart. so whats the point of pivot when i cant use them on M1?? am i doing it wrong?

Yes, of course.
Weekly and monthly pivots are very strong levels.

Regards,
Edward

Edward, Hi,

By the way, while trading with Pivot Points should we also use weekly and monthly Pivot Points for the purpose discussed in this blog?

Thank you very much

Serge

Hi Phillip,

I would solve this problem by taking only one - the very first touch - for every single pivot line we have, because that's where the highest probability of an immediate reaction - a bounce back is. On the second touch you have somewhat less chance, further - even lower chance.

An

That's exactly as I understood it, too. But just think about that: Price touches Fibo-Level, you enter, you close have some profit and price moves away from that level. So far everything is OK. But then price comes backand you could start the whole thing again, as you would, if it did move quite far or ther was quite some time between this touches.
And there lies the problem: How far does the price have to move or how much time has to past between these touches? I did trade this strategy with quite some profits, but exactly this makes it dificult to make an EA. And that's what I have to find out.

Rregards

Philipp

Hi Phillip,

I would understand it this way:
we would need to take 1 trade at the time and ignore all other signals till we close it.

The point of the whole system is to catch that first shy bounce of the Pivots line. That's where we look to take a few pips profit. The second, third and so on attempts as well as cutting through the pivot line - all would be relating to other story, other system.
Thank you.

An

As I said above I try to write an EA for this strategy. What I did to make sure the program knows the correct trading direction I said if last 1 or 2 candles came from above/below support/resistance. This works with the array mql has for high, low, open and close (I still try to figure out which one of this four is best). So that's exactly what Edward wrote. The big challenge is to find out how many bounces the EA trades at the same line and during which intervals.
If I find a solution for this and finished the EA I will let you know and post it here.

I also thought maybe it's better not to enter directly at the given level, but wait until price starts to move in the opposite direction. Because many times I saw price broke through a support/resistance for a few pips and started to move back then. So we could get some additional pips and we could also sort out some bad trades, when price broke through and never came back.

Regards

Philipp

Well, I'm not a programmer, but here is what I thought:

The case when the Pivot line is above the price and the price is rising:
in order to touch Pivot line, the price bar must RISE to it, which means, that at the moment of touching, bar's Open price should be lower than the price at the Pivot line. This tell us we should sell.

When price will be descending from above, at the moment of touch the bar's Open value will be higher that the price at the Pivot line - the price where it touches it.

I think we can examine the last candle by itself at the very moment it touches the Pivot line without any need to know whether the price was trending up or down before.
Just thoughts. I might be wrong though.

Regards,
Edward

hello, i found daily pivot points and all so let me get this correct. i wanted to automate the system but i see a problem with doing so. how can the program judge if price is rising or falling? would you need a MA to do that? because if you program it to go short or long, it would have to know that the laast X amount of candles would say price was rising or falling in order to go short or long. otherwise, it would have to be a grid system to automate it. it would work though. just not sure i want it to do martingale style. just percent of equity balance. this would work out maybe

Great stuff, Philipp

Thank you very much!

Regards,
Edward


 

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