Scalping system #8 (1 minute Scalping with Pivot Points)
Submitted by Edward Revy on March 23, 2008 - 19:50.
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!
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
I can show you numerous examples where price does not bounce off the pivot point. It does not behave that way all the time
Ashraf
Hi Guys,
How can we set to use for indicator pivot levels calculation data from 5 pm Eastern time to 5 pm next day Eastern time?
Sincerely,
Arnold
Hi Edward,
I'd tried to load these two pivot indicators, 'Auto_Pivot-mod.mq4' and the 'xpPivot.mq4' onto my chart. What I observed is that all pivot levels from the xpPrivot indicator are quite a distance apart whereas the pivot levels of 'Auto_Pivot-mod' is close to each other. Can you explain why two set of different pivot points. I'm confused. Please advice. Thank you
Regards,
Lim
Very good Alex - have been trialling a similar scalp strategywith EUR/USD and it seems to work well for counter trend trades when a PP is hit - am working on a sensible TP and SL - thanks for the info and good luck!
hello Edward,I could not understand your pivot scalping method.Could you please explain it clearly so that we can understand it.
Regards
Jewel
Thanks Edward for this simple & great strategy,... I learn and enjoy ur awesome system
Best Regards,
Michael L.
Hello Dario,
on MT4, try these two:
Auto_Pivot-mod.mq4
xpPivot.mq4
(to save, right click + save link as...)
Best regards,
Edward
Hello,
what indicator is best to use to fix the pivot points?
Thank you
Dario
a simple yet a great system
Thank you for the feedback!
You'll find the answer in this thread:
http://forums.forex-strategies-revealed.com/advanced-strategy-the-midnig...
Regards,
Edward
Dear Edward Revy,
Many thanx for this site.. I have learnt a lot from it since 2009.
I wish to kno that what is your bread and butter strategy that you use for trading.
many thanx..:)
At most I would trade 2 times (2 touches), but often just 1.
Alex
dear Alex, the price will touch the pivot point a few times, how many transaction do you do for each resistance/support ? i mean , after doing one transaction and make profit , when the price bound back to that resistance, do you do the same transaction or waiting to touch another support/resistance?
thank you Alex
All I can say - it's a safe scalping, and almost stress free as long as the rules aren't compromised too much.
8 hours is an enormous time to dedicate to Forex daily. But I guess it's often the case for novice traders. I remember myself when I first was introduced to Forex and began trading - Forex had the same effect on me - I was spending countless hours trading and I liked the challenge. With time though I realised I need to find the way to cut my daily commitment, and that's how I switched from scalping to long term trading.
Even then, pivot points have always been a part of my chart analysis. I find them easy to interpret and trade upon.
Happy trading!
Edward
Disclaimer: I have only been paper trading. I have been doing so for about 4-5 months now about 8 hours a day haha. I am looking at going live in about another month. I am fairly comfortable with the two systems I use, but both are based on the same principle... one is a set and forget, the other is a scalping, which is more so for my own entertainment while I am reading thread after thread after thread about the forex. I want to go as well prepared as possible when going live. Not just the strategies and money management either... i really enjoy reading peoples stories about how they had to learn about themselves and how they actually react to losing, as opposed to how they think they will react to losing. Love this site by the way Edward. Any more pearls of wisdom you can dole out I wouldn't mind to hear haha.
What I do for scalping though, is I define another line up and down beyond the pivot levels.. about 2-4 pips away, depending on how big the difference in price between the actual pivot, and the resist/support lines...i dont really use any calculation to decide 2 or 4... just kind of my own personal feel. When the price touches the pivot line, i then wait for the close to touch either the line above, or the line below and buy in that direction. I find it just gives me a bit more security that I am not going to buy in and its actually going to break out... and since you are scalping, you can set your SL pretty close to the pivot line and prevent a back trend eating you alive because retracements back towards the s/r levels happens way too frequently i've noticed.
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