Pivots Strategy - Looking For More Than A R2 or S2 Level - 22-May-16

Pivots Strategy – Looking For More Than A R2 or S2 Level – 22-May-16

This is the EURJPY trade we discussed in the last Live Weekly Workshop on Friday (the recording for pro members is available here and I recommend it to all recent Pro Members who missed the workshop as it addresses the question of how to approach markets if you are completely new to our strategies or if you are back at your screens after a long break).

This EURJPY trade I identified is one I put a market order in for shortly after the workshop. It was not triggered and I deleted it around 4pm UK time.

Nonetheless, it is a really good example of what I look for in a Higher Probability Pivot Points Strategy trade set up – But before I proceed…

I also mentioned in the workshop that it is perfectly acceptable to trade the Pivot Points Trading strategy “as is”. The statistics and independent back-tests verify it’s a long term profitable strategy. In fact one Pro Member has hinted that he is considering running an EA to trade the strategy “as is”.

However, I prefer to see a little more “strength” in the R2 / S2 level, in this case the R2 level. Check out the chart, I will discuss it below…

Pivots Strategy - Looking For More Than A R2 or S2 Level - 22-May-16 Chart

Here we have a nice ZONE (contained within 17 PIPs (124.00 – 124.17)) and in my opinion a Higher Probability Pivot Points Strategy trade set up.  Our Stop is 36 PIPs (124.53) above the highest level of our zone (124.17).

  • We have the R2 Level itself 124.14
  • We have the Big Round Number (124.00) – Which actually held and proved strong enough on it’s own!
  • We have the Weekly High (124.17)
  • And for those who like oscilators, we have the RSI(14) in Overbought territory

Of course, as already mentioned the Pivot Points Trading Strategy is a long term profitable strategy “as is”. But, rather than trade it “as is”, I prefer to see a ZONE – Where I believe each individual trade set up has even more strength.

Hope it helps.

All comments welcome.

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This update is based on my analysis on my charting package. It may differ to yours as it can be affected by time, market movements, charting packages and broker prices. I accept no liability for loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on any information in this report or analysis.