Trade using Just Pivots

1. My best trades are always done before 11am CST
2. My best trades use only support and resistance levels
3. My best trades have never involved too much risk
4. My best trades have been initiated near pivot points

A few years ago, my best trades were in corn, so I went back and reviewed some of those trades. It turns out that corn is in a bull market and all of my trades are long term in S1. The only marks on my chart are pivot points, and I only take long trades at S1. Uh-huh……

So, long story short, I cleaned up my charts and decided to start pivot trading again. Here's the game plan.

Currency Pairs <br> Only trade with the following objects on spreads below 2 pips. Since my stop loss is quite tight, any value greater than 2 pips may cause problems. So for starters I would just focus on EURUSD, EURJPY, USDCHF and GBPUSD (2.1 pips Wanda but close enough)

Identify trends <br> For this strategy we only want to trade based on the long term trend, to determine the long term trend I will use the daily chart although the 3/4 hour chart will work as well. Draw a simple trend line.

Draw Pivot Point Line <br> Anytime after 5pm ET. I will take the OHLC for the day and calculate the pivot point for tomorrow. Once the calculations are done - just plot them on the chart.

Planned Transaction <br> Now it's time to plan tomorrow's trade.

If the trend of the currency pair is down, we will only go short around R1.

We would only look to go long near S1 if the pair was trending upward.

Write down your planned trade area and take a break! It’s trading time tomorrow!