Pivots Trading Strategy - How A Short Trade Works 6-Mar-16

Pivots Trading Strategy – How A Short Trade Works

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

Following on from my previous post Pivots Trading Strategy – How A Long Trade Works, this is How A Short Trade Works…

Once again I will mention – 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 Short trades.

EURUSD trade from Thursday 3-Mar-16…

Pivots Trading Strategy - How A Short Trade Works 6-Mar-16 Charts

Entry (R2 Level is 1.09125)

To enter a Short trade we must SELL when the price on our chart hits 1.09125. Our charts are Bid charts so it means when price hits 1.09125, this is the price at which we can SELL. No need for any compensation for Spread.

Stop (R3 Level is 1.09436)

To exit a Short trade at our Stop level we must BUY when the price on our chart hits 1.09436. Our charts are Bid charts so it means when price hits 1.09436 the price at which we can BUY is 1.09446. This is the R2 Level (1.09436) PLUS the Spread (in this example, 1 for EURUSD).

Target (R1 Level is 1.08880)

To exit a Short trade at our Target level we must BUY when the price on our chart hits 1.08880. Our charts are Bid charts so it means when price hits 1.08880 the price at which we can BUY is 1.08890. This is the R2 Level (1.08880) PLUS the Spread (in this example, 1 for EURUSD).

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.

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.