1 min Scalping with Pivot Points

Intro: Pivot points are a popular tool used by traders in all sorts of markets. And, sure enough, pivot points are readily applied to trading currency futures.

Pivot points are support and resistance levels derived from the previous period's high, low, and closing values. There are a variety of pivot values with which to trade, including monthly,

weekly, and daily values. You could even calculate hourly values. When determining which period to trade with, you've got to consider your time frame as an individual and your particular style. I'll use daily pivot points for the purpose of this article since the focus is day trading.

Daily pivot points give a structure to each new trading day in the currency market. With these values you can use traditional support and resistance techniques to enter and exit trades.

But before I get to the strategy, I'll show you how to calculate

pivot values.

Pivot Point (PP) = (High + Low + Close) / 3

Resistance 1 (R1) = (2 x Pivot Point) - Low

Support 1 (S1) = (2 x Pivot Point) - High

Resistance 2 (R2) = Pivot Point + (Resistance 1 - Support 1)

Support 2 (S2) = Pivot Point - (Resistance 1 - Support 1)

The pivot values are plotted as horizontal levels which, in turn, serve as support and resistance. The pivot point itself can be thought of as the day's mid-point, or fulcrum. It's where the buyers and sellers  meet to determine the day's trend in a currency pair. The support and resistance levels that are plotted around the pivot point are just that: potential support and resistance.

The idea: Pivot points are great levels of support and resistance. The moment price comes and touches them it bounces off like a tennis ball.

Usually You can expect: 69-79% winning trades.

Pairs: EUR/USD GBP/USD GBP/JPY

Charts: 1Min, 5Min

Target: 5-10 pips

Apivot point and the associated support and resistance levels

are often turning points for the direction of price movement in a market. In an up-trending market, the pivot point and the resistance levels may represent a ceiling level in price above which the uptrend is no longer sustainable and a reversal may occur. In a declining market, a pivot point and the support levels may represent a low price level of stability or a

resistance to further decline.)

Setup:

- Determinate current short term trend for the Pair that you

want to trade.

1. Calculate Daily pivot points for your favorite currency pair. For calculation use data from 5 pm Eastern time to 5 pm next

day Eastern time.

2. Watch your 1 minute chart. Be patient. Let price touch any of pivot point lines, or come at least on pip away from it. Believe me, your patience will pay off.

3. The price do touch pivots 90% of the times. 90% is a lot. Enter with larger than you would regularly do order, but be reasonable.

4. Set stop loss 3 pips + spread on the other side of the pivot

line.

5. Take profit once available - I would usually close my trade within the first completed 1 minute candle and as soon as I'm profitable.

Share your opinion, can help everyone to understand the forex strategy.

For trade I recommend to choose Broker with MT4 >>