Cable & pivot points

Another day another chart,

some nice bounces on this one as well.
 

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The markets were certainly whipsawing around and when I see this I tend to zoom out to a higher time frame to see if there are opportunities and there was a great one on GBP/USD. I can post it later if wanted.


Paul
 
Trader333 said:
The markets were certainly whipsawing around and when I see this I tend to zoom out to a higher time frame to see if there are opportunities and there was a great one on GBP/USD. I can post it later if wanted.


Paul
Click to expand...


please do, :)
 
As the market was whipsawing around it made sense to switch to a higher timeframe in this case 15 minutes. The set up is as follows:

1) I was looking for a “Short” trade and note that point A is the first attempt to push prices higher.

2) At 9.30 there was positive news for the GBP but notice at point B the news did not sustain the upward move that should have kept pushing prices higher. Point B is also a pinbar that has failed to push through the R1 floor pivot level and as it happens this was also the Camarilla R4 “Breakout” price. This was the initial set up.

3) Note that point C is an “Inside” bar which denotes further indecision and further confirmed for me that a break of the low was a good Short opportunity.

4) I decided that to be on the safe side I should take a break of not just the pinbar low (or inside bar low) but also the R3 price which it did and was filled at a price of 1.6614 at point D.

5) Risk was a break of the high of bar C (the inside bar) which was 28 pips and target was the Camarilla S3 line or 85 pips. The reward was greater than 1:1 so was worth taking. Position size was adjusted for the fact that the risk was 28 pips which may seem high but when positioned correctly is fine.

6) I was cautious to see what happened at the pivot point and although it hesitated it carried on down reaching the target.



Paul
 

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We had a smaller range today but the pivots still worked a treat.
 

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Morning was not so good and i was not around for the afternoon action which was a lot better going.

also note to self: do not take a directional bias just trade what you see.
 

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There was a good trade on EUR/USD which I may post later on. The profit was not huge but was better than 1:1 so was worth it.


Paul
 
either way the idea is to give an understanding of how pivots can be used along with price action in pauls case.

I'm not expecting anyone to make live calls here.
 
Right,

Having looked at the charts over the week, seen a few of Pauls set ups re-read part of Raths journal and had another look at the nifty traders journal its time to put together a set up that's right for me.

The first two considerations are how to confirm entry and where to put stop loss.

With regard to the stop loss one option is to have the sl beyond R2/S2 - R3/S3

This would be quite a large sl and would only work well if I got the longer term trend right and only took bounces that kept me in that direction.

It also means that I could trade with less screen time as I could place limit orders in the morning and then walk away.

The other approach i'm considering is to wait for price to touch/penetrate a pivot pullback, then take the trade if price reaches this point again and fails to go higher.

This would allow for a much tighter stop but much more screen time and is the approach i am going to test.

Targets,

Targets will depend on the direction of the trade, continuation of the break out of reversal back into the asain session high/low.

The intention is break the trade up into 2/3 targets taking profit at each pivot.

I will be trading the uk open till about noon and will try to post charts at the end of the session of trades taken good and bad.

All comments/suggestions welcome.
 
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