How to Trade Forex Using Pivot Point as a Trading System
The simplest way and the three basic rules to use pivot point to achieve near certainty in forex tarding.
Rule 1:
Buy day is the day the market open above the pivot point
Sell day is the day the market open below pivot the point
Rule 2:
If the market is at pivot point , set up a bracket entery order at the pivot point
ie buy stop and sell stop, any of the order that is not activated will act as stop lose
Rule 3:
Fifteen to one hour after the market has open, if price is above or below the Pivot point,
Price Action will strongly tend to remain above or below the Pivot point for the whole session.
Rule 4:
Avoid buying the High or selling the Low, If the market opens, or later trades at the extremes (R2, R3 or S2, S3),
it will exhibit a tendency to trade back toward the Pivot
Use pivot point with technical indicators like MACD, Stochastc Moving Average and RSR
remember to take small profit
Money management is the key to forex tarding, dont risk more than 3 percent of your account
