If you haven’t heard of trading with pivot points, you might be missing out on a highly useful trading strategy. Pivot Points are points set in the general direction of the market movement to indicate entry and exit based on the market trend. They occasionally retrace, but usually, the trend in a bullish or bearish direction depending on market factors. Trading time frames for Pivot Points range from hourly to daily, weekly and longer.
Based on your targets or pivot points, you can easily scan your charts each day to monitor whether your pivots have been hit. If they were not hit, then you can reset your target in the direction of the trend. Many traders choose to trade with Pivot Points or Targets when they don’t have a lot of time for other, more complex strategies.
On my chart, you can easily spot three different pivots. The green dotted line denotes a daily pivot, while the weekly pivot is displayed as a continuous purple line and, lastly, the monthly pivot is displayed as a continuous light brown line.
You can also see that I crossed the pivots that were not struck by the market. This is because the EUR/AUD on the 4-hour timeframe has trended upward since April. When the market closes and re-opens for the next day, I get a new Pivot Point or Target. If you look at the chart, you can see 3 daily pivot points which did not meet their target starting on April 13th. There are 34 daily pivots, 30 of which hit the market in the next few days, which gives me 88% strike rate.
As a Forex trader myself, having access to this information has boosted my confidence in my abilities to trade towards the market and profit! This strategy works on ANY currency pair and gives traders specific entry and exit points, something many traders, especially beginning traders have a hard time doing.
MTI has taken this strategy one step further in their new Target Trading 2.0 course. Pro analysts and traders alike can show you step-by-step how to use this strategy for optimized entry and exit points, in addition to helping to establish your stop loss and take profit levels. This course was developed by traders, for traders to help give a competitive advantage to traders of all skill level. But I’m not the only one seeing results, Target Trader 2.0 users are seeing some of the highest profits ever.
If you haven’t set your target on Pivot Points, it’s time to take a look and see what this strategy can do for you, and how easy it really is.
Happy pips everyone!