Daily pivot bounce | Foreign exchange EA download - MT4/MT5 resources
The daily pivot bounce strategy is simple yet effective. The first step is to identify a currency that is in a major upward (or downward) trend. When a currency trends in this way, it usually moves in tandem with a basket of paired currencies. Therefore, up to four (or more) pairs can be traded simultaneously. The attached first set of Euro charts shows price action within a major bull trend on the 10 m time frame. The lower panel shows the same currency pair on the 30 m time frame, which allows us to clearly see the gradual upward trend.
Below is a chart of the Euro currency pair at 8:55 this morning. Note that prices for all currency pairs bottomed at 7am GMT. This gives a buy entry signal (usually at the daily pivot point, but not always). The lowest point of the reversal may sometimes be 4 am, but usually it is 7 or 8 am. See the chart below to see the classic pattern of a gradual uptrend. It appears to be getting stronger as the week progresses, mirroring the euro's strength against all other currencies. I chose EUR/USD to trade and made 500 pips by setting the 50 pip target at 10 pips per pip. When I took this screenshot, prices were still rising.
In summary, here are the basic setup rules for using this strategy:
1. Only scalp in the direction of the main trend.
2. For long positions, make sure the price is already above the daily pivot point, and for short trades, make sure the price is below the daily pivot point.
3. For long trades, make sure 20 Ma (green) and 50 Ma (blue) are above 100 Ma (yellow), and for short trades, 20 Ma (red) and 50 Ma (orange) are below 100 Ma (yellow).
4. Use a shorter time frame, 10 or 5 minutes, for precise entry.
4. When price retraces against the main trend, wait for it to peak and then enter in the direction of the trend.
5. Exit all open positions before the "News" program is released.
When these setup conditions are met, the 30 m chart will be released so that we are ready for test trading. Once the move is complete, a second chart will be posted showing the results.
Below is a chart of the Euro currency pair at 8:55 this morning. Note that prices for all currency pairs bottomed at 7am GMT. This gives a buy entry signal (usually at the daily pivot point, but not always). The lowest point of the reversal may sometimes be 4 am, but usually it is 7 or 8 am. See the chart below to see the classic pattern of a gradual uptrend. It appears to be getting stronger as the week progresses, mirroring the euro's strength against all other currencies. I chose EUR/USD to trade and made 500 pips by setting the 50 pip target at 10 pips per pip. When I took this screenshot, prices were still rising.
In summary, here are the basic setup rules for using this strategy:
1. Only scalp in the direction of the main trend.
2. For long positions, make sure the price is already above the daily pivot point, and for short trades, make sure the price is below the daily pivot point.
3. For long trades, make sure 20 Ma (green) and 50 Ma (blue) are above 100 Ma (yellow), and for short trades, 20 Ma (red) and 50 Ma (orange) are below 100 Ma (yellow).
4. Use a shorter time frame, 10 or 5 minutes, for precise entry.
4. When price retraces against the main trend, wait for it to peak and then enter in the direction of the trend.
5. Exit all open positions before the "News" program is released.
When these setup conditions are met, the 30 m chart will be released so that we are ready for test trading. Once the move is complete, a second chart will be posted showing the results.
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