Using Pivot Points for Market Ideas

[aliassmith]

Here is EU with daily pivots. The idea is the same as I shared before. The same "Likely" and "Less Likely" scenarios can be used for all tf pivots. Hence why I use daily and 4hr as well.

Using the daily TF here is how I see and use the pivots. As mentioned regarding the weekly, I look to buy below the open and sell above the open. Normally positions are opened a few hours before London. I will share that idea closer to that Session.

The setup seems simple.

How are you entering?

Are you always aiming for daily targets if H1/D? Building position?

Love to see your WL numbers

The idea is simple. Timing, stop loss placement, stacking, etc...is what makes the difference.

Adding to the position really helped me out. As mentioned on the NLA thread, Stacking has the potential of making a 1:2 or a 1:3 trade into a 1:5,1:7. Trade. At the moment I'm debating on using the box method. Reason is I don't fully understand where to place my box. I will chew on the idea and most likely decide on something soon.

Are you talking about a risk box at extremes?

[BambinoFlex]

It's a few minutes before a new 4hr candle begins at 00:00 my time or 1am NY.

This is where I use the 4hr pivots. The 4hr pivots, specifically the R3 and the S3, is what I will use as my stop placement.

The logic is that during the next 4hrs, while I'm asleep, London will open and do its thing. Then a new 4hr candle will start and about 2 hrs into that one I will be waking up and starting my day. As of now, that's how I do it since I have a full time job. As time progresses, and my circumstances change, I will be able to trade London and potentially the daily range with more proficiency.

This is Still EU, It shows the current 4hr coming to an end and the Future 4hr pivots. At the bottom you will see the price analyzer and the settings of Low Less than S3 and High Greater than R3.

Comparing this to other pairs, I would want to trade a different pair that shows a larger 4hr pivot. I've attached USDCAD to show what I prefer in regards to movement. Reason is that EU R2-R3 is too close to the "most likely" scenario of the pivot point being crossed.

In Regards to USDCAD, I have the flexibility of using the 4hr S3, the daily S1, or even the previous day low as my stop loss.

If today was Monday or Tuesday, I would have settled with the previous day low minus a pip or two. Targeting Previous week high. Since it's Friday, I really only wanted to show how I use the pivots. Next week I can show the weekly setups that I'm willing to open positions on.

EURUSD is bottom picture and USDCAD is the top one. Notice the difference in range using the pivots as a gauge.

[BambinoFlex]

The setup seems simple.

How are you entering?

Are you always aiming for daily targets if H1/D? Building position?

Love to see your WL numbers

The idea is simple. Timing, stop loss placement, stacking, etc...is what makes the difference.

Adding to the position really helped me out. As mentioned on the NLA thread, Stacking has the potential of making a 1:2 or a 1:3 trade into a 1:5,1:7. Trade. At the moment I'm debating on using the box method. Reason is I don't fully understand where to place my box. I will chew on the idea and most likely decide on something soon.

Are you talking about a risk box at extremes?

Yes! Using the risk box at extremes. Reason I'm debating is because I haven't really decided what to do. The benefit to the box is that it offers more flexibility with my positions and timing. Currently I move my stops toward my position at the start of a new day and I stack on a pullback since I've adjusted my risk. MO mentions to move my stop the opposite way, using my profits to expand my space, toward the larger timeframe extremes. I see this idea helping me because of the larger swings that I've encountered that take me out at small profits. Think GU last week. I had a 1:7 trade...Exited on 1:1 only to have price rocket to my tp of the weekly R1 the following day. NZDCAD this week. Moved my stops, for a very small profit, only to have NZDCAD hit my weekly tp of weekly R1.

I'm always thinking long term and what I'm willing to incorporate. So far, the box idea is winning but I have yet to decide where to place my box.

[aliassmith]

The idea is simple. Timing, stop loss placement, stacking, etc...is what makes the difference.

Adding to the position really helped me out. As mentioned on the NLA thread, Stacking has the potential of making a 1:2 or a 1:3 trade into a 1:5,1:7. Trade. At the moment I'm debating on using the box method. Reason is I don't fully understand where to place my box. I will chew on the idea and most likely decide on something soon.

Are you talking about a risk box at extremes?

Yes! Using the risk box at extremes. Reason I'm debating is because I haven't really decided what to do. The benefit to the box is that it offers more flexibility with my positions and timing. Currently I move my stops toward my position at the start of a new day and I stack on a pullback since I've adjusted my risk. MO mentions to move my stop the opposite way, using my profits to expand my space, toward the larger timeframe extremes. I see this idea helping me because of the larger swings that I've encountered that take me out at small profits. Think GU last week. I had a 1:7 trade...Exited on 1:1 only to have price rocket to my tp of the weekly R1 the following day. NZDCAD this week. Moved my stops, for a very small profit, only to have NZDCAD hit my weekly tp of weekly R1.

I'm always thinking long term and what I'm willing to incorporate. So far, the box idea is winning but I have yet to decide where to place my box.

Really a risk box can be used for any trade type. Several types of risk and trade management can be used with it. They main thing is to use low leverage then then you catch your position add and normlize your risk each time. Also you must have an exit plan that pays you off enough. They are very important

If I have some time on my desktop Saturday or Sunday I'll see about posting some risk box ideas.

[BambinoFlex]

Are you talking about a risk box at extremes?

Yes! Using the risk box at extremes. Reason I'm debating is because I haven't really decided what to do. The benefit to the box is that it offers more flexibility with my positions and timing. Currently I move my stops toward my position at the start of a new day and I stack on a pullback since I've adjusted my risk. MO mentions to move my stop the opposite way, using my profits to expand my space, toward the larger timeframe extremes. I see this idea helping me because of the larger swings that I've encountered that take me out at small profits. Think GU last week. I had a 1:7 trade...Exited on 1:1 only to have price rocket to my tp of the weekly R1 the following day. NZDCAD this week. Moved my stops, for a very small profit, only to have NZDCAD hit my weekly tp of weekly R1.

I'm always thinking long term and what I'm willing to incorporate. So far, the box idea is winning but I have yet to decide where to place my box.

Really a risk box can be used for any trade type. Several types of risk and trade management can be used with it. They main thing is to use low leverage then then you catch your position add and normlize your risk each time. Also you must have an exit plan that pays you off enough. They are very important

If I have some time on my desktop Saturday or Sunday I'll see about posting some risk box ideas.

Thank you! I'll post what I mean as well. Since the premise of creating a box isn't hard to understand, but the placement and the whole add and normalize situation is where I get lost. Not because I want to copy the method, but because I want to understand the "why?" and how those "why's?" help plus their limitations.

[BambinoFlex]

I'm awake now, slept through all of London, made breakfast, took the dogs out. Really relaxed overall.

Here is EURUSD now. As you can see, it created that opportunity below the open. It also crossed the daily pivot which is what I look for.

The Future pivots which is the new 4hr bar that will go into effect in about an hour, shows the new potential range. If you compare this to the picture posted earlier, you will the difference of how wide the pivots are. It's just extra information that implemented on the daily chart can really help you paint a picture of different trading scenarios. I only use the 4hr pivots for my initial stop loss, as usually by this time an expansion has taken place, creating really large pivot width.

Using this idea of how previous candle action "opens" the range is how I understand MO idea of Momentum candles.

[aliassmith]

Yes! Using the risk box at extremes. Reason I'm debating is because I haven't really decided what to do. The benefit to the box is that it offers more flexibility with my positions and timing. Currently I move my stops toward my position at the start of a new day and I stack on a pullback since I've adjusted my risk. MO mentions to move my stop the opposite way, using my profits to expand my space, toward the larger timeframe extremes. I see this idea helping me because of the larger swings that I've encountered that take me out at small profits. Think GU last week. I had a 1:7 trade...Exited on 1:1 only to have price rocket to my tp of the weekly R1 the following day. NZDCAD this week. Moved my stops, for a very small profit, only to have NZDCAD hit my weekly tp of weekly R1.

I'm always thinking long term and what I'm willing to incorporate. So far, the box idea is winning but I have yet to decide where to place my box.

Really a risk box can be used for any trade type. Several types of risk and trade management can be used with it. They main thing is to use low leverage then then you catch your position add and normlize your risk each time. Also you must have an exit plan that pays you off enough. They are very important

If I have some time on my desktop Saturday or Sunday I'll see about posting some risk box ideas.

Thank you! I'll post what I mean as well. Since the premise of creating a box isn't hard to understand, but the placement and the whole add and normalize situation is where I get lost. Not because I want to copy the method, but because I want to understand the "why?" and how those "why's?" help plus their limitations.

Probably be easier for me to respond to your specific question then. The box is about limiting risk and increasing profitability. I'll wait for your example.

[BambinoFlex]

USDCAD trade would have been a loss. Since Price broke previous day low and also S1, it is less likely to cross yesterdays high or R1.

Using this same idea, but for the weekly pivots, is how I filter out different pairs over the week. Usually by Monday, many pairs will have either crossed either previous week extreme or have crossed the pivot. This process of elimination creates the opportunity for my entries.

USDCAD pre london had crossed the daily pivot, giving me the green light for a buy. Price continued lower, breaking previous day low and S1. I'm no longer interested in this pair. If a trade would have been opened, it would have been a loss regardless if the 4hr S3 wasn't breached.

Same idea, but applied to Weekly. EU, as shared above, is one I'm still interested in. It crossed the pivot, now I'm seeking an expansion toward previous day extreme, in this case the high. Again, I use this on the weekly, but I did start out using it on the daily and then once I became comfortable, I was able to apply it to the weekly chart.

[cheunt3]

USDCAD trade would have been a loss. Since Price broke previous day low and also S1, it is less likely to cross yesterdays high or R1.

Using this same idea, but for the weekly pivots, is how I filter out different pairs over the week. Usually by Monday, many pairs will have either crossed either previous week extreme or have crossed the pivot. This process of elimination creates the opportunity for my entries.

USDCAD pre london had crossed the daily pivot, giving me the green light for a buy. Price continued lower, breaking previous day low and S1. I'm no longer interested in this pair. If a trade would have been opened, it would have been a loss regardless if the 4hr S3 wasn't breached.

Same idea, but applied to Weekly. EU, as shared above, is one I'm still interested in. It crossed the pivot, now I'm seeking an expansion toward previous day extreme, in this case the high. Again, I use this on the weekly, but I did start out using it on the daily and then once I became comfortable, I was able to apply it to the weekly chart.

Looks like daily UC is wanting to pop, stuck in a tight range for a few days.

usdcadkreslik.png (48.45 KiB) Viewed 1733 times

Looks like 4hr S3 wasn't touched if you placed your stop there.

I'd be very interested in Alias' RB placement. For me I put my trades as close to the extremes (my blue lines).

[BambinoFlex]

Its been ranging quite a bit and it looks like today will be an outside bar type of day. Another trading friend of mine and see a bullish UCAD long term, if you open the monthly pivots, its been ranging off the monthly pivot.

Looks like EU kept going down and crossed S1. It happens, and I'm okay with it, but as mentioned before, when I'm right, I tend to make a good chunk that takes me over what I've lost. Losing is part of the game lol