This is a trading plan based on years of experience. Trial, error, gains made, money lost, shock and realization that anything can happen in this market. Understanding when I am in sync and understanding when I have no pulse on the market. Some may call it an art, others an instinct, I just call it being true to myself. I can’t explain every detail to participants as that would be relative to explaining quantum physics to a three year old, or me for that matter as I know nothing of quantum physics. I pride myself on Knowing that I don’t even know what I don’t know. This is my plan, and I do call it my plan because you cannot see what I see, think what I think, act as I act, nor could I do those things as you. I offer it to participants for two reasons; First, the universal law of attraction: whatever you release, speak, and think, the universe will create a unique vibration, positive or negative and that vibration will return to us in kind. I have had for over a decade above all a desire to be a full time Forex Trader. If I can help enough other people reach their goal through trading then maybe I too can reach mine. Second, to help others overcome what I have discovered, that is the solitude of this profession. I am not just speaking of the hours of screen time all alone, looking at charts with nobody to bounce ideas off. But also the end of the day or end of the trade where your best friend, spouse, significant other, children; have zero idea what you are talking about. For those reasons I share with you my trading guide.
Fibonacci Pivot Strategy
The Fibonacci pivot Strategy is trading strategy that combines the use of both the popular Fibonacci sequence and pivot point to trade forex. They are decisive points on charts where the price action may witness strong support or resistance and indicate a market reversal or if knocked out of order it can signify strong moves.
I combine it with a secondary set of support and resistance indicators called Murrey Math based on Gann Principles. WD Gann, was a finance trader who developed several technical analysis methods. Gann market forecasting methods are based on geometry, astronomy and astrology, and ancient mathematics. Don’t stress, as long as your indicators are right you don’t need to understand the entire education behind it, just as a baker doesn’t need to understand microbiology to make bread or a brewer to make beer (which I do know something about).
Finally I add in fundamental analysis into my strategy to have a true big picture of what markets are likely to do.
Murrey Math is a complex set of support and resistance levels that act more or less the same as pivot points but also they provide some insights whether the current trend should continue or it should reverse.
Fundamental analysis is a way of looking at the forex market by analyzing economic, social, and political forces that may affect the supply and demand of an asset.
How to trade Fibonacci Pivots
Fibonacci Pivot Strategy & Price Action Trading
Price action occurs as a result of the operation of the top players in the financial market like the central banks and commercial banks together with the very large speculators. These top players in the financial marketing rely on levels. The key players in the financial markets may use different strategies, indicators, fundamental analysis and much more, but at the start of the day to day trading or the trading period theyconcentrate on, they basically watch out for one particular thing on their chart which is the price levels. They watch the levels at which they have firm price that is likely to react, and levels at which they have decided to enter or exit the market. The top players in the market concentrate mainly on authentic price levels, instead of on the indicators or financial systems. A more detailed description of these levels:
Periodic Highs and Lows
This indicates the highs and lows attained in the preceding period. For instance, you may plot the preceding week’s highest and lowest price point attained, looking forward to a reaction at these farthest levels.
Support and Resistance Levels
This can be planned in the future, depending on where price previously establish either support or resistance with candle formations for confirmation.
Round Numbers
These means larger price levels culminating in zero, for instance 1.5150 and so on. Very influential levels at which to anticipate a reaction, and once more, we can plan them across FUTURE price levels, contrary to a few form of lagging indicator.
Pivot Points
The pivots are not commonly utilized by retail traders and this is a tragedy. It is very beneficial if you know how to use them especially for the higher timeframe. Pivot points help to divide the present period into levels based on the preceding period’s price extremes. It is related to Periodic Highs and Lows, but plots the different intermediary points where price can be anticipated to react.
I am not trying to lose you here, just make you understand there are depths to price action. Follow these guidelines to start.
Zones 61-100 are often areas where swings fail and you can counter trade or trade with the trend. Pivot trading works in either direction, I suggest for beginners to determine the trend based on a minimum of a daily chart, and trade in the direction of the trend. There are other advanced methods of choosing direction based on swap costs etc… but that is not for today.
Weekly Pivots are equilibrium, creating for me a road map of support and resistance. The best trades are at S/R 61-100 levels, however trades can be made above or below WP, again with experience. I like to enter the market with stop and limit orders but I will enter market orders if timing and price action are right.
The market rarely moves strait up or strait down and so this strategy works a majority of the time. A kin to driving down a road and following the signs, however the market frequently decides to divert from the path and we need a larger view to see where those areas might be, since we are entering in the opposite direction of a break out. Draw down will happen with this strategy but with Murrey Math levels we may be able to mitigate some.
Murrey Math is a complex set of support and resistance levels that act more or less the same as pivot points but also they provide some insights whether the current trend should continue or it should reverse. I consult these areas of support and resistance to confirm a trade or determine if a break out has actually occurred and if so where the next area of support and resistance may be. Below are a quick and dirty set of guidelines I use.
Murrey Math Guidelines
8/8 th's and 0/8 th's Lines (Ultimate Resistance)
These lines are the hardest to penetrate on the way up, and give the greatest support on the way down. (Prices may never make it thru these lines).
7/8 th's Line (Weak, Stall and Reverse)
This line is weak. If prices run up too far too fast, and if they stall at this line they will reverse down fast. If prices do not stall at this line they will move up to the 8/8 th's line.
6/8 th's and 2/8 th's Lines (Pivot, Reverse)
These two lines are second only to the 4/8 th's line in their ability to force prices to reverse. This is true whether prices are moving up or down.
5/8 th's Line (Top of Trading Range)
The prices of all entities will spend 40% of the time moving between the 5/8 th's and 3/8 th's lines. If prices move above the 5/8 th's line and stay above it for 10 to 12 days, the entity is said to be selling at a premium to what one wants to pay for it and prices will tend to stay above this line in the "premium area". If, however, prices fall below the 5/8 th's line then they will tend to fall further looking for support at a lower level.
4/8 th's Line (Major Support/Resistance)
This line provides the greatest amount of support and resistance. This line has the greatest support when prices are above it and the greatest resistance when prices are below it. This price level is the best level to sell and buy against.
3/8 th's Line (Bottom of Trading Range)
If prices are below this line and moving upwards, this line is difficult to penetrate. If prices penetrate above this line and stay above this line for 10 to 12 days then prices will stay above this line and spend 40% of the time moving between this line and the 5/8 th's line.
1/8 th Line (Weak, Stall and Reverse)
This line is weak. If prices run down too far too fast, and if they stall at this line they will reverse up fast. If prices do not stall at this line they will move down to the 0/8 th's line.
The Fibonacci pivot Strategy is trading strategy that combines the use of both the popular Fibonacci sequence and pivot point to trade forex. They are decisive points on charts where the price action may witness strong support or resistance and indicate a market reversal or if knocked out of order it can signify strong moves.
Fundamental Analysis
Fundamental analysis is a way of looking at the forex market by analyzing economic, social, and political forces that may affect the supply and demand of an asset. It’s Economics 101, it is supply and demand that determines price, or in our case, the currency exchange rate. The hard part is analyzing all of the factors that affect supply and demand. You have to understand the reasons of why and how certain events like an increase in the unemployment rate affects a country’s economy and monetary policy which ultimately, affects the level of demand for its currency. The idea behind this type of analysis is that if a country’s current or future economic outlook is good, their currency should strengthen. Fundamental analysis combined with pivots can give us a strong edge on the direction a pair will move.
Psychology of Trading
Everything I have talked about so far is minutia; it can be learned on a demo account over time with guidance and online resources. Please, if you are new to this UNDERSTAND this, Psychology of trading, discipline, thinking with a clear head when your account is up, and staying calm when your account is down, when to react to surprises and when to sit on your hands, it CANNOT be taught. I repeat IT CANNOT BE TAUGHT only learned. It’s typically several expensive lessons, and you will pay for the education. It’s also a lesson that never ends, you can be a master at this and still have your head dig you a hole that was unnecessary to dig. Read all the books you can dig up, watch all the videos you can find, they will help, but you will only truly learn through experience at this. Good luck and god speed, may the force be with you, and may the wind be always at your back and the sun upon your face. This is the single most important realm of trading.
Money Management
This is the second most important realm of trading. Also not something I am going to dive into too deep because this is also highly personal. I use only catastrophic stop losses if I set them at all. I have a number in my head based on my account balance and that is the place that I will take a loss if support and resistance, fundamentals and price action says so. What I won’t do is enter a trade 10X to be stopped out after a 20pip hiccup 10X only to have my target hit several hours later. That is not how the market guides me. I will tell you it takes a might of psychological fortitude to do what I do the way I do it. I will give you this guideline, if you are going to trade this path, be prepared to give a 80-100pip stop loss and manage your position size accordingly. I enter the market in areas, which means not all at once. Small portions of my maximum position size at different prices in my area of interest.
Example: Max Position= 1 Lot.
.10X10 scattered over an area of Support or Resistance= 1 lot. First entry and last entry could be 30-50pips apart.
I should also cover risk reward ratio here. Many will shake their heads at me. I am willing to risk 10% of my account on one trade IF necessary, meaning if fundamentals, price action and pivots indicate a hold. My reward is as much as the market will give, which is based on pivots, fundamentals and price action. Entries and targets are both determined in the same way; Areas of Support and Resistance, Fundamentals and Price Action.
GOALS
What I can recommend here: Do not set daily goals, it creates too much pressure. My goal is 10% of my original account balance per month until my account balance grows to 100%. Then I withdraw a quarter of my account balance. The 75% return is now my account balance and becomes my new base for monthly 10% growth goal.
Fibonacci Pivot Strategy
The Fibonacci pivot Strategy is trading strategy that combines the use of both the popular Fibonacci sequence and pivot point to trade forex. They are decisive points on charts where the price action may witness strong support or resistance and indicate a market reversal or if knocked out of order it can signify strong moves.
I combine it with a secondary set of support and resistance indicators called Murrey Math based on Gann Principles. WD Gann, was a finance trader who developed several technical analysis methods. Gann market forecasting methods are based on geometry, astronomy and astrology, and ancient mathematics. Don’t stress, as long as your indicators are right you don’t need to understand the entire education behind it, just as a baker doesn’t need to understand microbiology to make bread or a brewer to make beer (which I do know something about).
Finally I add in fundamental analysis into my strategy to have a true big picture of what markets are likely to do.
Murrey Math is a complex set of support and resistance levels that act more or less the same as pivot points but also they provide some insights whether the current trend should continue or it should reverse.
Fundamental analysis is a way of looking at the forex market by analyzing economic, social, and political forces that may affect the supply and demand of an asset.
How to trade Fibonacci Pivots
Fibonacci Pivot Strategy & Price Action Trading
Price action occurs as a result of the operation of the top players in the financial market like the central banks and commercial banks together with the very large speculators. These top players in the financial marketing rely on levels. The key players in the financial markets may use different strategies, indicators, fundamental analysis and much more, but at the start of the day to day trading or the trading period theyconcentrate on, they basically watch out for one particular thing on their chart which is the price levels. They watch the levels at which they have firm price that is likely to react, and levels at which they have decided to enter or exit the market. The top players in the market concentrate mainly on authentic price levels, instead of on the indicators or financial systems. A more detailed description of these levels:
Periodic Highs and Lows
This indicates the highs and lows attained in the preceding period. For instance, you may plot the preceding week’s highest and lowest price point attained, looking forward to a reaction at these farthest levels.
Support and Resistance Levels
This can be planned in the future, depending on where price previously establish either support or resistance with candle formations for confirmation.
Round Numbers
These means larger price levels culminating in zero, for instance 1.5150 and so on. Very influential levels at which to anticipate a reaction, and once more, we can plan them across FUTURE price levels, contrary to a few form of lagging indicator.
Pivot Points
The pivots are not commonly utilized by retail traders and this is a tragedy. It is very beneficial if you know how to use them especially for the higher timeframe. Pivot points help to divide the present period into levels based on the preceding period’s price extremes. It is related to Periodic Highs and Lows, but plots the different intermediary points where price can be anticipated to react.
I am not trying to lose you here, just make you understand there are depths to price action. Follow these guidelines to start.
Zones 61-100 are often areas where swings fail and you can counter trade or trade with the trend. Pivot trading works in either direction, I suggest for beginners to determine the trend based on a minimum of a daily chart, and trade in the direction of the trend. There are other advanced methods of choosing direction based on swap costs etc… but that is not for today.
Weekly Pivots are equilibrium, creating for me a road map of support and resistance. The best trades are at S/R 61-100 levels, however trades can be made above or below WP, again with experience. I like to enter the market with stop and limit orders but I will enter market orders if timing and price action are right.
The market rarely moves strait up or strait down and so this strategy works a majority of the time. A kin to driving down a road and following the signs, however the market frequently decides to divert from the path and we need a larger view to see where those areas might be, since we are entering in the opposite direction of a break out. Draw down will happen with this strategy but with Murrey Math levels we may be able to mitigate some.
Murrey Math is a complex set of support and resistance levels that act more or less the same as pivot points but also they provide some insights whether the current trend should continue or it should reverse. I consult these areas of support and resistance to confirm a trade or determine if a break out has actually occurred and if so where the next area of support and resistance may be. Below are a quick and dirty set of guidelines I use.
Murrey Math Guidelines
8/8 th's and 0/8 th's Lines (Ultimate Resistance)
These lines are the hardest to penetrate on the way up, and give the greatest support on the way down. (Prices may never make it thru these lines).
7/8 th's Line (Weak, Stall and Reverse)
This line is weak. If prices run up too far too fast, and if they stall at this line they will reverse down fast. If prices do not stall at this line they will move up to the 8/8 th's line.
6/8 th's and 2/8 th's Lines (Pivot, Reverse)
These two lines are second only to the 4/8 th's line in their ability to force prices to reverse. This is true whether prices are moving up or down.
5/8 th's Line (Top of Trading Range)
The prices of all entities will spend 40% of the time moving between the 5/8 th's and 3/8 th's lines. If prices move above the 5/8 th's line and stay above it for 10 to 12 days, the entity is said to be selling at a premium to what one wants to pay for it and prices will tend to stay above this line in the "premium area". If, however, prices fall below the 5/8 th's line then they will tend to fall further looking for support at a lower level.
4/8 th's Line (Major Support/Resistance)
This line provides the greatest amount of support and resistance. This line has the greatest support when prices are above it and the greatest resistance when prices are below it. This price level is the best level to sell and buy against.
3/8 th's Line (Bottom of Trading Range)
If prices are below this line and moving upwards, this line is difficult to penetrate. If prices penetrate above this line and stay above this line for 10 to 12 days then prices will stay above this line and spend 40% of the time moving between this line and the 5/8 th's line.
1/8 th Line (Weak, Stall and Reverse)
This line is weak. If prices run down too far too fast, and if they stall at this line they will reverse up fast. If prices do not stall at this line they will move down to the 0/8 th's line.
The Fibonacci pivot Strategy is trading strategy that combines the use of both the popular Fibonacci sequence and pivot point to trade forex. They are decisive points on charts where the price action may witness strong support or resistance and indicate a market reversal or if knocked out of order it can signify strong moves.
Fundamental Analysis
Fundamental analysis is a way of looking at the forex market by analyzing economic, social, and political forces that may affect the supply and demand of an asset. It’s Economics 101, it is supply and demand that determines price, or in our case, the currency exchange rate. The hard part is analyzing all of the factors that affect supply and demand. You have to understand the reasons of why and how certain events like an increase in the unemployment rate affects a country’s economy and monetary policy which ultimately, affects the level of demand for its currency. The idea behind this type of analysis is that if a country’s current or future economic outlook is good, their currency should strengthen. Fundamental analysis combined with pivots can give us a strong edge on the direction a pair will move.
Psychology of Trading
Everything I have talked about so far is minutia; it can be learned on a demo account over time with guidance and online resources. Please, if you are new to this UNDERSTAND this, Psychology of trading, discipline, thinking with a clear head when your account is up, and staying calm when your account is down, when to react to surprises and when to sit on your hands, it CANNOT be taught. I repeat IT CANNOT BE TAUGHT only learned. It’s typically several expensive lessons, and you will pay for the education. It’s also a lesson that never ends, you can be a master at this and still have your head dig you a hole that was unnecessary to dig. Read all the books you can dig up, watch all the videos you can find, they will help, but you will only truly learn through experience at this. Good luck and god speed, may the force be with you, and may the wind be always at your back and the sun upon your face. This is the single most important realm of trading.
Money Management
This is the second most important realm of trading. Also not something I am going to dive into too deep because this is also highly personal. I use only catastrophic stop losses if I set them at all. I have a number in my head based on my account balance and that is the place that I will take a loss if support and resistance, fundamentals and price action says so. What I won’t do is enter a trade 10X to be stopped out after a 20pip hiccup 10X only to have my target hit several hours later. That is not how the market guides me. I will tell you it takes a might of psychological fortitude to do what I do the way I do it. I will give you this guideline, if you are going to trade this path, be prepared to give a 80-100pip stop loss and manage your position size accordingly. I enter the market in areas, which means not all at once. Small portions of my maximum position size at different prices in my area of interest.
Example: Max Position= 1 Lot.
.10X10 scattered over an area of Support or Resistance= 1 lot. First entry and last entry could be 30-50pips apart.
I should also cover risk reward ratio here. Many will shake their heads at me. I am willing to risk 10% of my account on one trade IF necessary, meaning if fundamentals, price action and pivots indicate a hold. My reward is as much as the market will give, which is based on pivots, fundamentals and price action. Entries and targets are both determined in the same way; Areas of Support and Resistance, Fundamentals and Price Action.
GOALS
What I can recommend here: Do not set daily goals, it creates too much pressure. My goal is 10% of my original account balance per month until my account balance grows to 100%. Then I withdraw a quarter of my account balance. The 75% return is now my account balance and becomes my new base for monthly 10% growth goal.
"Not all those who wander are lost." - Tolken
. I was away most of the day. It appears 2 of my positions got triggered on E/A I closed one out before rollover to bank some profit and will watch price action for the second. My bias is that my other two positions will be triggered before we get a meaningful move in the desired direction. Anything can happen. CJ Trade ended very good.....still a gap to close....already had it for 9 days so I closed out.
