Thank god with the Hourly Pivots I found the best trading method: Its good for both trend trading and scalping as it adapts to maket conditions.
Lowest Risk, Max Profit, not depending on any other indicators, not depending on prior ohlc prices or any other historical pivot points. Easy to understand, Profit Target 5 times higher than risk allows many errors, works on any market, ideally on 1 min chart to see proper price action around the pivot points and targets.
Key Rules:
- Each hour one trade is made when the price goes through the pivot and the stop is trailed at the 2 target points, very simple.
- Some its wise to wait for trend entries after 3.30 am, 8.30 am, 9.30 am instead of entering at the even hour but overall its just 1 trade per hour. With core hours from 9 till 11 am.
Hi there...
ReplyDeleteNice blog! I have been using hourly pivots in my trading for quite awhile. It looks like you are using them exclusively for breakout trend trading? Have you found that they work well on all markets or just the DAX? So your entry parameter is the break of the pivot? Do you find the market pulls back below the pivot frequently (testing the level) before continuing? Where do you place stops? Are you on East Coast Time?
yes the entry would be at a valid break of the pivot (fast going through or, a price above / below the bar that crossed the pivot)
ReplyDeletefdax, crude oil, eur/usd, nasdaq are my favorite markets, the pivot method works perfectly for them
the key thing is to ignore pullbacks (test of the pivot) and simply anticipate the price to reach at least the R1 or S1 for short.
i found that at market tops, most of the time at least R1 is reached, so being in the market from the pivot price assures you have a profitable trade.
stops i place below the last price cluster / fractal (for long trades usually 50% between pivot and S1)
yes all times are on eastern summer time (new york), did you realize that key turning points occure each monday for example at about the same time, its like the big boys have a time table to place their trades :-)