My first post, looks like a nice forum here with some fresh ideas.
I thought I'd like to share a strategy im currently testing and would appreciate any opinions.
First of all let me say I dont like working with indicators so this is purely based on price.
The basis behind the strategy is to incorporate Pivot Points and take pips between any movement between the daily PP and either S1 or R1.
Im currently testing on 5 currency pairs. My trades are put on at 00:01 GMT as my pivot points are calculated from the previous daily candle. I aim to take 25% of the move from the daily PP to either S1 or R1 which is the last quarter of the move to either support of resistance.
E.g EUR/JPY Today the Daily Pivot is 124.87 and S1 is 123.58 therfore my trade to open is 123.91. TP is S1 which is 32 Pips which it had no problem achieving. Now the part that doesnt look so great, I figured the SL need to be about 1.6 of the TP to give the trade some room but so far from testing the success rate is pretty high.
The theory behind is when I see the price cross the mid point between the daily PP and S1/R1 it gives me enough of an indication where the market is heading so I want to take some of that move. It may be possible to open the trade at the mid point therefore the TP would be double however I feel at the midpoint the price can often turn around therefore I want confirmation it is definatly past it and am happy with 25% of the move.
Am interested to hear anyones thoughts.
Sorry if the explanation isnt great but I will explain anything if need be but its a very simple system so Im sure you'll get it.
Pivot point system is very effective and reliable trading system in the forex market that can be used alongside other indicators and you can be sure of ranking in some profit before the end of the days trading is over. PP was originally discovered in the stock market.
Are you putting in bracket orders at 00:01GMT? Or do you wait and watch?