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OK everybody, what is the perfect way to trade off of pivots, should I trade on a penetration, a bounce off, on its own second penetration of the line....ect....
A buddy of mine no longer transactions FX ( he lost some money and doesnt have the patience for this....he has ADHD)and gave me the peter bain course. I know the idea but I need just a little clarity into trading....
Thanks
Rsq955
Any 1 use pivots?????????????
RSQ
Read Mark Fisher's book about his ACD system, I bet youll be happy with it.
I put monitoring buys/sells with pivots when they cross r1 or s1. After the price is 15 pips past r1 or s1 I place a trailing stop buy/sell onto it for approximately 10 below/above it and trail it by 10. I figure if it comes back it'll head to the pivot back, but when it doesnt I dont really have a way to understand.
I also trade with larger lots and only try for 5-10 pips.
Example
usd/jpy r1 rally is at 144.50. After the price goes 144.65 I fall a trailing stop market at 144.55 and have it course 10 by pips. I also add a trailing stop buy at 144.53, targetting 144.50 that will be the r1 (I have a 3 pip spread), with a 10 pip trail.
So anytime it crosses the r1 and then heads back down 10 it'll grab my order and I hope it'll continue another 8pips. It usually works fairly well, and I could tell whether its gont run off rather early.
I have tried this technique when it's getting near the pivot, trusting it will bounce back down, but I have had less luck with it. I have had the most luck with r1 and s1.
Happy trading!
The way I use pivots depends on market condition. If the market is trending, once it shoots pass a boil stage, I'd go along with the trend, either buying the very first drawback or just going along with it.
When the market is choppy and prices consolidate above/below a pivot point, I'd set a buy/sell order below or above prices.
seems like a pal of mine!: