Trading the Weekly Pivots

Been in and out of FX for the past 5years or so. Have gone through the whole "search for the holy grail" process, and of course not found any. But here's hoping that this method will result in healthy returns yet not being a slave to the screens.

A strong believe in KISS.

1) throw up a weekly pivot indicator on your chart, preferably one that shows you previous weekly pivots too, so that you can backtest manually.
2) find the distance between (a) pivot and wkly resistance (b) pivot and wkly support
3) trade the direction of the one with the larger distance

1. e.g. pivot is 180pips apart from weekly resistance. pivot is 230pips apart from weekly support. GO SHORT

*the difference between (a) and (b) should be significant enough. at least 30 pips difference.*

put a trade limit on the pivot and go do something else for the day.

Stop loss
I normally place it slightly below the nearest price support/resistance, or a round number, 00 or 50, nearest to the weekly support/resistance

Take Profit
Sometimes I place it at the nearest price support/resistance, or the round number nearest to the weekly support/resistance.

*Your reward should be larger than your risk! Or at the very least, equal*

Risk Management
Go with what you're comfortable with. But whatever you do, trade a few pairsto diversify the risk

Disclaimer:
I'm no pro. Follow at your own risk. I find the daily pivots do not work very well, so weekly pivots it shall be. Some pairs are good to trade, some aren't.

Discussions:
I hope someone will backtest it and produce some statistics. Discussions about tweaking TP & SL, a better way of judging when to enter, or different timeframes are welcomed. Complicating this method is highly frowned upon on. Any pros who are trading a KISS pivot method please share!

Pivot, support and resistance levels in technical analysis is traded by most experienced trader to identify the market direction. Pivot point level can be used to determine bearish or bullish market. This is the classic trading system. Thanks for shared

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channel system

Hello there!

Interesting stuff! Could you upload the indicator you are using concerning the weekly pivots?

Thank you in advance,
Akis

You can refer to http://www.forexfactory.com/showthread.php?t=308304 to obtain the indicator.

Credits to nanningbob and stevehopwood

There are bound to be losses, especially when the market is uncertain. The orange boxes indicate losses, blue rectangles indicate winners

There are also some pairs that work well, and some pairs that don't.

For trades that have met the criteria but have been stopped out, you can use a counter-trend method that you are familiar with to try to get back into the game. But beware that while it can help you reverse that loss, it may also increase your losses! Then you will tend to even trade more..and even lose more..revenge trading at its worst.

If you have decided to take the plunge to try to recover the loss, make sure it meets the following criteria
1) difference between pivot-support and pivot-resistance is significant
2) price moved against the 'intended' direction
3) the current move is not a super strong trend

Then choose a method to enter the reverse direction. do not use the weekly support/resistance as a point of entry! In a strong trend you'll hit your stop loss in a jiffy. Oscillators or recent price support/resistance are OK.

Again, there are some pairs that work well, and some pairs that don't. Look for those that keep touches both support and resistance lines all the time.

@dogfight,,, I notice that sometime price does not retrace to its Pivot when the distance between open prce andpiovt point is above 50 pips.

hmmmm.... don't you think it will be a good ideal to use currency strength meter to know which currency is strong and weak,then use pivot to know the overall market sentiment.

If you check previous week,you will see that there was Strength in JPY,EUR,GBP, and CHF and there was weakness in NZD,AUD and CAD.

So Possible BUY Trade: EUR/NZD, EURAUD, GBPAUD,

While possible SELL Trade: NZDJPY,

So apply the weekly pivot if the market sentiment agrees with currency strength and weakness.

Checking: This week : EURNZD move up by 505 pips
EURAUD move up by 505 pips
GBPAUD move up by 230 pips
NZDJPY move down by 427 pips

So test the rest......Have a pipful weekend

the difference between pivot-r1 & pivot-s1 will tell you the same information, so there is no need for the currency strength meter.

Yeah sometimes price does not retrace to its pivot, but there are many pairs to choose from

Let start posting how to trade you weekly pivot system......the thread is too dry bro....please add some fuel to keep the fire burnin