Trading Forex using Pivots

[Faris]

Hello Noises.

Hows it going with the beach parties mate?

Not actually incorporated pivots into strategy yet as im still testing their reliability but so far so good. Was able to get an early signal before Fridays crash so got a good entry.
Not sure how i would work out Mondays pivot, would i use Thursday 22.00 to Friday 22.00.
Using CMS VT charts.

Faris..

P.S : do you think its possible to post picture of scenery in Cali.
By scenery i hope you know what i mean! LOL

 

[noises49]

Pivot Calcs

Hi Faris,

Yes, you're correct. Today's pivot based on Friday's action is 1.8379. You can also go to dailyfx.com and access "Daily Fundamentals" page, which is published at the end of the day. They compute pivots across all pairs. We didn't come close to hitting the pivot today, but had a nice entry sell when Friday's low of 1.8256 was taken out - for a tidy profit. Ergo, I recommend bracketing Pivot with High or Low (what ever's appropriate) and acting accordingly. My bias is for a bounce off the pivot and a break of the high or low. I'm willing to get stopped out a few times in order to establish a position using these rules. It usually pays off.

A photo of a "California babe" is attached for your enjoyment.

Regards

 

[Faris]

Hey Noises.

Thats a cute little girl you've got there ( assuming she is yours).

Am i correct in the assumption that if price reverses of a pivot line then we could be looking at a continuation of the current trend. If price goes through with strong momentum then either its a new trend or its going into a consolidation trend.

I know from your previous post you have mentioned that if price does not anywhere near the pivots you should enter on either the high or low of the previous day. how would you work out your stop? would you use the pivot assuming its not far away

Faris...

No beach party stories?? :cheesy: :cheesy:

 

[Buk]

the pivot worked again today Faris....moving up slightly early hrs, pulling back this morning (5.00 - 7.00am), then continuing away from the pivot for another + 175 run (up to press).....the pivot can be used as an initial stop, as the move materialises the trailing stop can be implemented to keep you in the move.

 

[Faris]

Hello Buk.

Hows the trading getting on?
I take it that you've started to incorporate pivots into your system.
looking at today if i trailed my stop, more than likely i would have got stopped out around the 1.8350 mark. Should i use a larger trailing stop?

Faris...

 

[Buk]

ticking along nicely thanks mate!....I am aware of the pivot, and it's certainly useful as part of a 'confirm' picture.....but like anything else out there, it'll only work if you stick to your rules & trade your signals!....to be honest Faris, I've been stepping in & out of cable this morning, stops are dependant on your own personal viewpoint & stake defins etc....I occasionally use ema's as a guide once in a trend, have a play around on your desired timeframe & see how the stop relates to your risk/reward expectations!

 

[noises49]

Today's Pivot Action

Hi Faris,

Interesting action today. Pivot = Close, so no target at the start of the trading day. Buk caught it right. Traded up for a few hours and then came back and bounced at about 0700GMT for a nice gain.

(Granddaughter)

 

[awoodj]

Time to use for Pivot points using CMS-forex (Visual trading)

I am currently opening account with CMS and now have an indicator that will automatically draw pivot points on their Visual Trading software charts by just giving it a few values. I am now looking to find out what would be the best time to use for previous days info, anyone using CMS and if so what do you use?

I know with CMS you can get the previous day info according to their charts by just looking at a daily chart but i have a feeling this is not the most suitable range for the time i want to trade.


PS I intend to try and trade UK time 6am to 8:30 then leave position open with stop loss/limit order or close it before i go to work at 8:30ish.

Any help appreciated.

 

[noises49]

Pivot Calc Times

Awoodj,

The times on CMS are correct - they are the ones to use. 2200GMT, which is 1700 on VT (NY is -5). This it the time interests are updated. Every service that provides quotes that I've seen ends the old and starts the new day at this time. Some folks try to adjust timing to coincide with the different sessions but it won't buy you much.

Regards

 

[al-motor]

Awoodj,

I am using CMS as well- did u say u have an indicator that draws the pivots automativcally ?? Is this part of CMS charting ?? ( where pls?)

I think like noises says, just use previous daily bar as calculation values.



Al

 

[awoodj]

Thanks, for reply and further question

Ok i will just go with the daily values from previous day.

Yes i do have an indicator that draws the Pivot's but it is not part of the standard Visual Tading software, PM me with your email address and i can send it to you.

Also be interested if anyone has been able to do any kind of back testing on the success of Pivots combined with a few other indicators. You can extract the price data quite easily from visual trading to excel but i am still wrestling with converting it from Excel to Metastock format using the downloader to do some backtesting. Anyone had any success converting the exported Excel data into Metastock format?

I am taking this route as i would prefer to backtest using CMS data as if i trade though them it is their pricing i need to make a system work with.

 

[Orion]

awoodj

To get your data into Metastock, try going into Downloader and use the "Convert" function. This will take an Excel file and convert it into Metastock format, given that the source data in the spreadsheet is Date followed by OHLC fields and is in correct date sequence.

 

[Faris]

Hello Noises.

Was wondering about your views today on Cable using the pivot.
So far it seems to have passed through twice on the up and once through the pivot.
I calculated the pivot being near the 1.8359 mark.
Is there any TA you use side by side with the pivot, maybe to confirm a breakthrough?
If using 15 min chart how many bars/ points will you wait for an entry of reversal or breakthrough?

Faris...

 

[noises49]

Pivots

Hi Faris,

Your pivot calc was right on today. It was a rough go however.
Trading him is an art. Price broke thru twice today and reversed. I use MA to confirm price action. Both the 15 and 30 held above the pivot. So perhaps use that if you're feeling conservative. If aggressive, put your stops on and pray. It may take more than one trade to get it right. Don't be afraid to reverse your trade - but whipsaw is always possible. The question I ask myself is:

What's more painful - Getting stopped out for a small loss or missing/getting in late for a large gain?

Regards

 

[awoodj]

Metastock conversion of CMS/Excel data to Metastock

I have attached the data but will also post this to the Metastock board and see if anyone knows how to convert.

All i did was copy the data and paste it into Excel (you can paste direct to downloader but the data is in the wrong format/sequence)

 

[mercury7]

Noises,
Been watching with interest your strategy re-pivots.
Tries it this morning, and went short when price went under the pivot of 1.8365 (think thats the correct pivot for today).
Price though moved very quickly and was hard to put in an order to catch the beginning of trend.
As sar and macd together with emas confirmed the action, the entry seemed clear enough.
Problem I find is where do I exit.
At present it is roughly as low as 6th April. Should I look for patterns to see a bottom, or do you base it on something else?
Regards,Kevin
ps. referring to gb/usd

 

[noises49]

Stops on today's action

Hi Merc,

Your pivot was exactly right. We had a clean breakthru today. He didn't linger too long at the pivot. If you're still short I would remain in - based on the fundamentals - lots of talk of US interest rise. So let's look for a decent stop to preserve some profit. 1.8264 shows significant resist - that's my choice. What about you? Also, I'd be looking to pyramid on a break of 1.81 and every cent or half cent down.

Regards

 

[JonnyT]

I predict a bounce today...

JonnyT

 

[DiscoPete]

Thanks for sharing the strategy, i'm sure that with experience it will become a good strategy to trade as well as being a good one for a beginner to get to grips too!

Today on the GPB/USD the pivot was at 1.8245 and has traded below that today so applying the 4-point method sold the low of yesterday @1.8127 and now sitting on a 40pt profit in a few hours!

Using CMS how would a 40pt profit = £40? Is it 1 mini contract or a large one? Not sure as i'm new to this!

Cheers
Pete

 

[mercury7]

noises,
thanks for charts, personally I am not very good at posting them so keep clear!
Some of the best moves happen while we are asleep, wish I could stay up all night,and caught continuation of fall at 4.30 from 1.8150 to 1.8080 using my 5 min chart, although it had tarted earlier if brave enough!
As a beginner at forex (2 months) after doing Dow, my experience is small, but looking for break of circa 1.8060 on 29th Feb to dip toe back in waters for selling.Think
Jonny may be right about a bounce.
As I said may have missed best sell in early hours, who knows?
Kevin