Psych Levels, Pivots, and Trendlines - Resurrected 12420 replies
Important psych levels 1 reply
Disliked1) Use an indicator for Meatrader that plots pivot points on a 15 minute chart with the close of business for the US Session being the start of the day. If you need one let me know... I've got one. I didn't author it - I found it somewhere... maybe here... don't remember.
2) Plot all the psych levels for each session. Anything ending in 50 or 00 gets a line on the chart.
3) What's being released during the session you are trading and what's it's impact. Nothing going to help you if you don't know what NFP is and it's importance on price action.
4) Look at the daily high and low for the day.
5) Where is price when the day starts. If it's 8:30am and you are trading the US Session and price is at R3 already go back to bed.
6) Only trade when the market is moving. It's usually a small window.
7) Once you have your lines plotted and your ready to go determine where price is in relation to the pivot point.
8) If it's above you are looking to go long... below you are looking to go short.
9) Once price hits a key level and retraces you are looking to enter after it begins in to move again.
10) This seems like a lot but a few pics will make it very lucid. SnagIT 8 is still uninstalling so I may have to wait until tomorrow to post my charts.Ignored
I honestly believe the system is too easy to implement.
Most novice traders are looking for a more complicated approach to the markets.
It' s human nature.Ignored
Very interesting topic. I really do want to completely understand how pivot points play a role in the price. Lately I have been really observing the "psych levels" and have no doubt that they are key price levels. The question for me is trying to figure out when a price reaches a psych level will it eventually continue past it or will it turn around and trend the other way. What is the best way to go about figuring that out?
For example for some of my trades (which are always with the trend), the price will reach a psych level. Then I need to make the decision keep it open on the possibility that it will pierce through that price level? Or in some cases, the price will turn away and take with it all my gains. Is there a good way to go about this? Test it some how, or is that just the way it is? we just accept the gains or losses that come with it?