Daily pivot bounce

Have you noticed the Pin Bars and Double Bar Highs/Lower Closes on those trades near or on Pivot -you see similar in the early posts of James16. Worth keeping an eye on imho of course.

Well spotted. Thanks.

Good morning daily pivot traders. Here is the EUR/USD 30M chart at 06:28 this morning Monday 20th July. It shows a perfect pattern with good potential. Let us wait for a retracement to (or very near) the pivot.

Good morning, yes its looking good ,, but I have to go to work now, I will have to work out a way of putting a suitable pending trade .

Thanks for your efforts and dedication, hope the pips come to you today..

You could put a sell stop order just below or on the pivot.

...which would have worked very well today. Nice strategy, thanks for sharing!

Setting a sell order on the pivot worked today, however, strength coming back into the Euro prevented any pips being made. Price just moved sideways all day.

We have a similar set up today as yesterday. Let's see if a sell order set at the daily pivot produces any results today.

Oh dear! Price stormed through the pivot today as the Euro moved very strongly to the upside. Setting an entry order on the pivot is therefore not a very good idea. Oh well, back to the drawing board.

Perhaps a more flexible or reliable strategy, especially for those who have to make a trade early, this 'Scalping the Euro at the Open' may be a better bet.

http://www.forexfactory.com/showthre...86#post8282386

Just a suggestion ,,, but I use the CCI on all my charts and when it crosses above 100 on the 15m or higher , the price is only going one way , there is a thread on here that is the CCI non lag and they only use the one hour and the CCI over 100 or under -100 , and it works ,

Today on all the Eur pairs the CCI worked as in attached....

Thanks for this. I'll check it out.

OK ,, I call the CCi the King ,, as it is never wrong above 100 or below -100, I also add a 50 and a -50 which are good for 5m ,,, it would be worth back testing on those times when price has suddenly gone thru the pivot, ,

I respect greatly your knowledge and experience, I am in comparison a mere novice , but we can all benefit from each others experience's

Hmmm. Tricky. If anything was that good then surely we would all be using it. CCI, as an oscillator, does the same job as RSI or Stochastic, i.e. it shows over-bought or over-sold. When any oscillator stays above or below its critical line then price is trending. Besides, all oscillators show different levels depending on the time frame.

pgburty, please permit me to correct you with regard to my knowledge and experience. My trading is no where near as good as I would like it to be, so I wouldn't attach too much regard for it. I am a pragmatist, and ask a simple question, 'Does it work'? The sad thing is that when we find a strategy that works, it only works for a limited period of time. If any strategy worked consistently, then once we have found it then we would all be wealthy. However, because the markets are dynamic they can never be consistent, can they? Therefore, my limited experience teaches me this: technical indicators show us what the market has done, and the patterns we see on the charts are an illustration of past price action. What we are all looking for is an indicator that can tell us what price is going to do. And that is the tricky bit because we can never be certain.

So, my conclusion is that the only true indicator is what price is actually doing, or 'price action', which is activated by and maintained by the momentum of 'market sentiment'. In other words, the charts are a graphic illustration of the global totality of market sentiment towards a particular currency. That being so, if global market sentiment is bullish to the Euro, (or any other currency) then that currency will move up against 'all other currencies'.

This means that if we get the direction of movement right, in accordance with global market sentiment, then we can trade that currency with any of its pairs or all of them. When this has happened, from time to time, I have cashed in, so the question is, 'how can we recognise a global sentiment in favour of one currency so that we can cash in on its price action'? We saw this 'global sentiment' phenomenon yesterday with the Euro. When it happened, price action crashed through the daily pivot and all other resistance levels, pushed by powerful momentum. When this happens we are offered the opportunity to jump on the trend when price retraces from time to time. Its a bit like waiting for a train to slow down before trying to jump on it.

Now, these strong moves, powered by global sentiment and momentum are rare, but easy to spot when we become aware of them. They start with a strong solid bar 'on all pairs'. Price will retrace very slightly and then proceed when other traders 'jump on' the train. Thus, the breakout becomes the start of a strong new trend. However, these breakouts are not the norm. The 'norm' is more likely to be a consolidation pattern where price action moves sideways between highs and lows that show themselves in the wicks of the candles at the lower and higher extremes of the sideways channel. When this is the normal pattern then the normal strategy would be to 'fade' (trade against) the spike. So, let's take a look at trading this strategy during the early European session with the Euro. I shall therefore move my comments to that specific discussion : http://www.forexfactory.com/showthre...86#post8282386 and put the strategy to the test. Best regards to all.

Here is a perfect example of the Daily Pivot Bounce strategy at work. Did anyone get it?

Here is a perfect example of why we must not trade when news releases are expected. This down spike is the result of bad economic news out of Germany.

Any trade that bounced off the pivot today would have suffered losses.

Hey Tellboy,

How are you?

Just wanted to find out if you are still using this strategy? and if so how is it going?

I've always noticed a sudden strong trend which takes place between 7:30 and 9:00, but could never seem to determine the direction. Have looked at your method and I tried it myself a few times. There is definitely something to it. It's not 100% but nothing is. If you look carefully and choose your pairs carefully it often works exactly how you say.

I did note though as you say, close off before any big news, and I often find in the afternoon things can go backwards. In my few tests I try and close off before 1pm.

Anyway, was interested to know if you still using this method and how its working out for you?

Regards
Warren