What do you think about this strategy?
I setup pivot points using the daily chart everyday. I also use an EMA (10 & 21) crossover to assess the trend of the market. I sometimes have loss making trades and sometimes profit making.
So, I know losses can't be eliminated completely but I'm looking to minimize them as much as possible.
I have heard that on the daily chart when candle closes below the pivot point then it will be a bearish day. So should we not create any long trades on that day? This was the case in usdcad yesterday.
In part, it may also have been because of the Core CPI data that was going to release at that time but then I waited for New Home Sales data and it didn't have much of an impact.
Anyway, I would much appreciate if someone can point me to a pivot point strategy that is better than mine.
Just for clarification : those were loses?
Why are you buying at first support? Maybe it would be better to wait first support to be broken and then sell and use the second support to close. Buying at a first support is risky (that would be too narrow range).
Also, what are you using as a primary indicator for trend (something like 200 sma that is so commonly used in analysis as a primary trends direction and support/ resistance on a daily chart)?
Yes, those were losses. I had set my TP at pivot point but it didn't hit that.
So, if price retracts from 1st support & resistance levels I shouldn't buy/sell? Yes, that would be less risky. Thank you for the suggestion.
I'm using 50 SMA as a primary indicator.
pivot point is a good indicator
how long have you study the pivot point?
generally speaking , if the candle closes below the pivot point then it will be a bearish day. but don't everyday will like this .
the pivot point shouldn't be used singly. it must be used with other signals,such as SMA, STOCH, RSI, MACD and so on.
in my opinion, the pivot point match with SMA is a good choice.
in my country ,perhap the pivot isn't very poppular, many people don't konw this indicator.
i can't find any friend using the pivot . it's a pity.