Trading Price Pivots | Grid EA Download - MT4/MT5 Resources
Hello everyone,
The method I'm about to explain is not a complete proof, there is nothing in the transaction. Now I want you to think about various aspects of my method and try it out on your diagrams, using your mind at the same time. I call it "my" method because that's how I trade. This is by no means something I created. This is just information I've compiled from the vast amount of information I've gained throughout my trading career. So, these are the bits and pieces that I rely on to survive.
So for it,
1- When I look at a daily chart , what stands out to me is that price tends to move from 500 points to the next. So I have a grid-like structure on my chart showing 1000 and 500 points. I consider these to be my main horizontal lines. I also subdivided each 500 area into 250 and 125 dots. For example, EURUSD, I have 1.40000, 1.45000 and 1.50000 as main lines; among the ones I have, 1.41250, , 1.43750, 1.46250, & 1.48750. The number in red font is decimal 250, and the number in black font is 125.
2- Weekly Charts This is where I come up with my trading week bias, but a lot can happen in a week so I tend to be very flexible with my bias. The reason is that, to me, daily charts tell the story of now and today. What I look for on a weekly basis is either a strong rejection candle off the main lines of the grid, or a bold close above/below the main lines.
3- PA
This is something that can be discussed at length. What I like to see is a convincing price pivot (not a pivot point) that indicates a change in direction, whether short term or not, it doesn't matter as long as I get into where I'm supposed to be. The chart below shows the price pivot.
Now, once the third candle, also known as the confirmation candle, closes, the price pivot is confirmed. In the case of a pivot low, the long entry should be on the open of the fourth candle, but I would wait until I get a good retracement from the swing from the pivot low to the confirmation candle high, as I'm interested in a big retracement, especially since most days in PA, if they do, they tend to retrace quite a bit of time before continuing on their way. Additionally, I tend to trade multiple currency pairs at the same time because price pivots in one pair occur simultaneously in many other pairs, and entering the retracement zone will help control one's thoughts, not to mention that there will be a large retracement before the trade is favorable. So what I did was set up a Fib retracement from the pivot low to the high of the confirmation candle, then drop down to the 1 hour or 30m chart and wait for another (but what should be) good looking price pivot. Once I get that combination from the 61.8 or 50 or 38.2 level, I enter my trade on the fourth candle and the market. If I like PA and get a nice price pivot, I can sometimes get into the 100-61.8 area as well. What this does is allow me to enter at a better price than when the day opened in most cases, with a smaller stop loss. Sometimes the price will deviate from the opening direction. I don't chase it, I just ignore this pair no matter how good it looks. I insist on backtracking...
4- I also used some indicators:
- EMA 5 and 10 are both closing prices
- EMA 200 close
- RSI 14
- Recently I started using a currency strength meter to help pick currency pairs. But I only use it when confirming price pivots. We can discuss this further later.
My favorite is RSI because it tells a lot about PA. I mainly use it to identify divergences, hidden divergences, trend identification, entry confirmation, etc. I have learned to love and respect the RSI the most among many indicators. For example, in a bull market, the RSI will fluctuate between 40 and 90, then fall back to the 40-50 area to find support before continuing the bullish trend. A bear market, on the other hand, will fluctuate between 10 and 60, with 50-60 being resistance. There are many more ways to trade using the RSI, but for now I'll settle for this.
5- Stop loss and take profit prices
I typically place a hard stop ten pips below the daily pivot low and then trail the stop to the low of each subsequent daily candle after the successful entry. If you want to place one, the TP can be any primary or secondary line, depending on the PA. Price targets are really a personal preference, I like to stay in the trade as long as possible until the market knocks me out or once I get a convincing opposite price pivot.
Once I have more time I'll post some screenshots so you can piece them together. I think this method has a lot of potential, and I hope everyone interested in getting involved in this topic can make this method better.
NOTE: This discussion is in relation to pivot lows, as opposed to pivot highs.
greeting
Chantal
The method I'm about to explain is not a complete proof, there is nothing in the transaction. Now I want you to think about various aspects of my method and try it out on your diagrams, using your mind at the same time. I call it "my" method because that's how I trade. This is by no means something I created. This is just information I've compiled from the vast amount of information I've gained throughout my trading career. So, these are the bits and pieces that I rely on to survive.
So for it,
1- When I look at a daily chart , what stands out to me is that price tends to move from 500 points to the next. So I have a grid-like structure on my chart showing 1000 and 500 points. I consider these to be my main horizontal lines. I also subdivided each 500 area into 250 and 125 dots. For example, EURUSD, I have 1.40000, 1.45000 and 1.50000 as main lines; among the ones I have, 1.41250, , 1.43750, 1.46250, & 1.48750. The number in red font is decimal 250, and the number in black font is 125.
2- Weekly Charts This is where I come up with my trading week bias, but a lot can happen in a week so I tend to be very flexible with my bias. The reason is that, to me, daily charts tell the story of now and today. What I look for on a weekly basis is either a strong rejection candle off the main lines of the grid, or a bold close above/below the main lines.
3- PA
This is something that can be discussed at length. What I like to see is a convincing price pivot (not a pivot point) that indicates a change in direction, whether short term or not, it doesn't matter as long as I get into where I'm supposed to be. The chart below shows the price pivot.
Now, once the third candle, also known as the confirmation candle, closes, the price pivot is confirmed. In the case of a pivot low, the long entry should be on the open of the fourth candle, but I would wait until I get a good retracement from the swing from the pivot low to the confirmation candle high, as I'm interested in a big retracement, especially since most days in PA, if they do, they tend to retrace quite a bit of time before continuing on their way. Additionally, I tend to trade multiple currency pairs at the same time because price pivots in one pair occur simultaneously in many other pairs, and entering the retracement zone will help control one's thoughts, not to mention that there will be a large retracement before the trade is favorable. So what I did was set up a Fib retracement from the pivot low to the high of the confirmation candle, then drop down to the 1 hour or 30m chart and wait for another (but what should be) good looking price pivot. Once I get that combination from the 61.8 or 50 or 38.2 level, I enter my trade on the fourth candle and the market. If I like PA and get a nice price pivot, I can sometimes get into the 100-61.8 area as well. What this does is allow me to enter at a better price than when the day opened in most cases, with a smaller stop loss. Sometimes the price will deviate from the opening direction. I don't chase it, I just ignore this pair no matter how good it looks. I insist on backtracking...
4- I also used some indicators:
- EMA 5 and 10 are both closing prices
- EMA 200 close
- RSI 14
- Recently I started using a currency strength meter to help pick currency pairs. But I only use it when confirming price pivots. We can discuss this further later.
My favorite is RSI because it tells a lot about PA. I mainly use it to identify divergences, hidden divergences, trend identification, entry confirmation, etc. I have learned to love and respect the RSI the most among many indicators. For example, in a bull market, the RSI will fluctuate between 40 and 90, then fall back to the 40-50 area to find support before continuing the bullish trend. A bear market, on the other hand, will fluctuate between 10 and 60, with 50-60 being resistance. There are many more ways to trade using the RSI, but for now I'll settle for this.
5- Stop loss and take profit prices
I typically place a hard stop ten pips below the daily pivot low and then trail the stop to the low of each subsequent daily candle after the successful entry. If you want to place one, the TP can be any primary or secondary line, depending on the PA. Price targets are really a personal preference, I like to stay in the trade as long as possible until the market knocks me out or once I get a convincing opposite price pivot.
Once I have more time I'll post some screenshots so you can piece them together. I think this method has a lot of potential, and I hope everyone interested in getting involved in this topic can make this method better.
NOTE: This discussion is in relation to pivot lows, as opposed to pivot highs.
greeting
Chantal
📦 Summary of post attachments (6)
Below are all the files (6) shared in the reply.
💡 Featured Recommendations
✍️ Latest by the author
- •
- •
- •
- •
- •
- •
📌 Popular topics
- •
- •
- •
- •
- •
- •
- •
- •
🔗 You May Be Interested In
- •
- •
- •
- •
- •
- •