Pivots Trading Strategy - How A Long Trade Works 21-Feb-16 538x218

Pivots Trading Strategy – How A Long Trade Works

For those of you new to the Pivot Points Trading Strategy and the Pivots Strategy MT4 Indicator.

A few questions in this area this week – So, just want to take the chance to clarify…

Most charts these days are Bid charts, meaning they reflect the price at which we can SELL an instrument. The charts (and the data) upon which the strategy is based and my own primary trading charts (GKFX) – Are Bid charts.

This is how Spread, on Bid charts, is applied for Long trades – DOW trade from Friday 19-Feb-16…

Pivots Trading Strategy - How A Long Trade Works 21-Feb-16 Chart

Entry (S2 Level is 16296.7)

To enter a Long trade we must BUY when the price on our chart hits 16296.7.  Our charts are Bid charts so it means when price hits 16296.7 the price at which we can BUY is 16298.7.  This is the S2 Level (16296.7) PLUS the Spread (in this example, 2 for the DOW).

Stop (S3 Level is 16204.3)

To exit a Long trade at our Stop level we must SELL when the price on our chart hits 16204.3. Our charts are Bid charts so it means when price hits 16204.3, this is the price at which we can SELL. No need for any compensation for Spread.

Target (S1 Level is 16364.3)

To exit a Long trade at our Target level we must SELL when the price on our chart hits 16364.3. Our charts are Bid charts so it means when price hits 16364.3, this is the price at which we can SELL. No need for any compensation for Spread.

Note: Bid charts are the industry standard and if yours are not (check yourself or ask your broker) – It is well worth considering an alternative broker and/or charting platform.

Additional note: Usually the Spread for the DOW on GKFX is 1.  Because I am producing this report at the weekend and the markets are closed, it is 2. So, the actual winning trade details on Friday were, Entry 16297.7, Stop 16204.3, Target 16364.3.

The Pivots Strategy MT4 Indicator (shown on the chart) is included in our MT4 Indicator Bundle – Includes all applicable Spreads and displays complete trade details on your chart.  Not just a time saver – It also means no manual calculations, no room for error!

Hope it’s useful!

DISCLAIMER & COPYRIGHT

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.