5# System Pivot Forex Strategy
Submit by Janustrader 14/04/ 2011
Time Frame: 5 Min
Currency Pairs: Majors
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
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.
Pivot Points Forex Strategies