The strategy for the daily pivot bounce is simple and effective. Step one is to identify a currency that is in a steady stepped-up (or down) major trend. When a currency is trending in such a way, it usually moves in unison with a basket of paired currencies. Therefore as many as four (or more) pairs may be traded in unison. The first set of attached charts of EUR show price action whilst in a major bull trend on a 10 m time frame. The lower set shows the same pairs on a 30 m time frame which allows us to clearly see the stepped-up rising trend.
Here are the charts for EUR pairs this morning at 8:55. Notice that price met its bottom on all pairs at 7 am GMT. This gives the buy entry signal (usually at the daily pivot, but not always). The bottom point for reversal can sometimes be at 4 am, but is usually 7 or 8. See the charts below for the classic shape of the stepped-up rising trend. It seems to get stronger as the week progresses which is reflecting a strengthening EUR against all other currencies. I chose EUR/USD for my trade and made 500 by setting a 50 pip target at 10 per pip. At the time I took this screen shot price was still rising.
In summary, here are the essential set-up rules for using this strategy:
1. Only ever scalp in the direction of the major trend.
2. For a long position make sure that price is already above the daily pivot, and for short trades price is below the daily pivot.
3. For long trades be sure that the 20 ma (green) and 50 ma (blue) are above the 100 ma (yellow), and for short trades the 20 ma (red) and 50 ma (orange) are below the 100 ma (yellow).
4. Use a lower time frame, i.e. 10 or 5 minute for precision entry.
4. When price is retracing against the major trend, wait for it to reach a peak and then enter in the direction of the trend.
5. Exit all open positions before a 'news' item is scheduled to be released.
When these set-up conditions are met, a 30 m chart is to be posted so that we can be prepared for a test-trade. After the move has been completed a second chart will be posted to show the outcome.
Here are the charts for EUR pairs this morning at 8:55. Notice that price met its bottom on all pairs at 7 am GMT. This gives the buy entry signal (usually at the daily pivot, but not always). The bottom point for reversal can sometimes be at 4 am, but is usually 7 or 8. See the charts below for the classic shape of the stepped-up rising trend. It seems to get stronger as the week progresses which is reflecting a strengthening EUR against all other currencies. I chose EUR/USD for my trade and made 500 by setting a 50 pip target at 10 per pip. At the time I took this screen shot price was still rising.
In summary, here are the essential set-up rules for using this strategy:
1. Only ever scalp in the direction of the major trend.
2. For a long position make sure that price is already above the daily pivot, and for short trades price is below the daily pivot.
3. For long trades be sure that the 20 ma (green) and 50 ma (blue) are above the 100 ma (yellow), and for short trades the 20 ma (red) and 50 ma (orange) are below the 100 ma (yellow).
4. Use a lower time frame, i.e. 10 or 5 minute for precision entry.
4. When price is retracing against the major trend, wait for it to reach a peak and then enter in the direction of the trend.
5. Exit all open positions before a 'news' item is scheduled to be released.
When these set-up conditions are met, a 30 m chart is to be posted so that we can be prepared for a test-trade. After the move has been completed a second chart will be posted to show the outcome.
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