5# System Pivot Forex Strategy

Submit by Janustrader 14/04/ 2011

Time Frame: 5 Min
Currency Pairs: Majors
Indicator:Pivot Points

Strategy

Long Trades (see example below)

1) The currency price must trade in the vicinity of the oversold S1 or S2 support level.
2) Price isn't able to close below S1 or S2 (otherwise skip the trade).
3) Wait for the price to develop a bullish bias in the vicinity of S1 or S2
4) Now go long according to the bullish pattern's trading rules and place stop accordingly.
5) Target Profit five pips before the Pivot level

Trading System
Pivots_Daily.rar
compressed file archive [6.6 KB]
Download

Pivot System Long Entry

The EUR Dollar was not able to close below support1 (S1) on the chart. You could easily draw a falling trend line and wait for the price to close above the trend line, thus creating a bullish bias. This created a long trade entry at 1.4415 with stop loss 1,4395. and TP 1,4449.

forex system
PivotsD_v5.rar
compressed file archive [19.8 KB]
Download

Short Trades

1) The currency price must trade in the vicinity of the overbought R1 or R2 resistance level.
2) The price isn't able to close above R1 or R2 (otherwise skip the trade).
3) Wait for the price to develop a bearish bias in the vicinity of R1 or R2
4) Go short according to the bearish pattern's trading rules and place stop accordingly.
5) Target Profit.

The EUR Dollar was not able to close above the resistance (R1) on the chart. You could easily draw a falling trend line and wait for the price to close below the trend line, thus creating a bearish bias. This created a short trade entry at 1.4491 with stop loss 1,4504. and TP 1,4458.