Best use of pivots??????????

OK everyone, what is the best way to trade off of pivots, should I trade on a penetration, a bounce off, on its second penetration of the line............ect.........

A friend of mine no longer trades forex ( he lost some money and doesnt have the patience for it....he has ADHD)and gave me the peter bain course. I understand the concept but I need a little clarity into pivot trading...........


Thanks
Rsq955

Sounds like a friend of mine!

Any one use pivots?????????????


RSQ

read Mark Fisher's book about his ACD system, i bet youll be happy with it.

I set trailing buys/sells with pivots when they cross r1 or s1. When the price is 15 pips past r1 or s1 I put a trailing stop buy/sell on it for about 10 below/above it and trail it by 10. I figure if it comes back it will head to the pivot again, but if it doesnt I dont really have a way to know.

I also trade with bigger lots and only try for 5-10 pips.

example

usd/jpy r1 pivot is at 144.50. when the price goes 144.65 i drop a trailing stop sell at 144.55 and have it trail 10 by pips. I also add a trailing stop buy at 144.53, targetting 144.50 which is 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 will catch my order and i hope it will continue another 8pips . it usually works pretty well, and i can tell if its gonna run away fairly early.

i have tried this technique when it is getting close to the pivot, hoping it will bounce back down, but i have had less luck with it. I have also 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 pivot point, I would go along with the trend, either buying the first drawback or just going along with it.

If the market is choppy and prices consolidate above/below a pivot point, I would set a buy/sell order right below or above prices.