Developing a strategy...

[irishtoffy]

Hi,

I have been starting to develop a strategy recently, and have noticed that on 15 minute charts, the daily pivot points ((H+L+C)/3) are quite significant support/resistances. But I am looking some advice for a trigger that would help to narrow down the trades to a better, more reliable ratio when they pass through these Pivot/S1/S2/S3/R1/R2/R3 points.

For example at the minute I'm following the trend in the 1 hour charts, while keeping an eye on major support/resistances on the longer TF (4H/daily). I then follow the trend from the 1H chart and use the 15minute chart to trade in the direction of the trend only when it approaches the pivot points.

But like I say I am not trading yet, just working on a strategy, and I was wondering if anybody else uses daily pivot points in their strategy and how they use them? What other indicators do you find works well with them? Do you use them as the trigger or do you use them to define entry/exit points? And if so do you have any suggestions for what I could use as the trigger for trading?

Thanks!

Paul

 

[Purple Brain]

Paul I’m a novice spot fx trader using fairly simple entries such as a reaction to (bouncing off) a moving average, but I’ve found using a whole bunch of support and resistance levels on my 15 minute chart is significant where they all group around the same level. I stick on pivot points for both daily, weekly and monthly all on the same chart as well as weekly high and low and yesterday’s high and low. Today’s open and a totally arbitrary high/low band 30 pips each side of today’s open. (I use the 5pm EST as the daily open). Isn’t as cluttered as it sounds and where a confluence of levels reinforce each other, I tend to trade up to or from these levels, but only if other entry criteria are in place, I don’t use them as entry setups in their own right, but I’ll certainly get twitchy and bring in the stops close when the price approaches them in an open position.

 

[TheLastBear]

Hi,

I have been starting to develop a strategy recently, and have noticed that on 15 minute charts, the daily pivot points ((H+L+C)/3) are quite significant support/resistances. But I am looking some advice for a trigger that would help to narrow down the trades to a better, more reliable ratio when they pass through these Pivot/S1/S2/S3/R1/R2/R3 points.

For example at the minute I'm following the trend in the 1 hour charts, while keeping an eye on major support/resistances on the longer TF (4H/daily). I then follow the trend from the 1H chart and use the 15minute chart to trade in the direction of the trend only when it approaches the pivot points.

But like I say I am not trading yet, just working on a strategy, and I was wondering if anybody else uses daily pivot points in their strategy and how they use them? What other indicators do you find works well with them? Do you use them as the trigger or do you use them to define entry/exit points? And if so do you have any suggestions for what I could use as the trigger for trading?

Thanks!

Paul

The best advice I can give you is to try what you have in mind and find out. The markets will tell you if you are right or wrong. We learn by making mistakes.

 

[Rambo35]

I am a fairly new trader myself and currently try to develop my own trading strategy. I agree with you TLB, I have come across a lot of traders who tell you not to try a certain approach because it did not work for them. I try to ignore all of that and test it for myself, should something not work for me I try to learn my lessons and move on.

 

[malaguti]

I am a fairly new trader myself and currently try to develop my own trading strategy. I agree with you TLB, I have come across a lot of traders who tell you not to try a certain approach because it did not work for them. I try to ignore all of that and test it for myself, should something not work for me I try to learn my lessons and move on.

try a moving average cross over system, preferably an optimised one and then tell us how you get on, because it would be awful if we told you in advance that it would be a bad idea..its not like collectively we may have also tried it and it didn't work.
Absolutely nothing wrong in reinventing the wheel each time..
the macd cross over system, thats another one you might want to put on your list

 

[TheLastBear]

try a moving average cross over system, preferably an optimised one and then tell us how you get on, because it would be awful if we told you in advance that it would be a bad idea..its not like collectively we may have also tried it and it didn't work.
Absolutely nothing wrong in reinventing the wheel each time..
the macd cross over system, thats another one you might want to put on your list

Look at all the sarcasm

 

[Rambo35]

try a moving average cross over system, preferably an optimised one and then tell us how you get on, because it would be awful if we told you in advance that it would be a bad idea..its not like collectively we may have also tried it and it didn't work.
Absolutely nothing wrong in reinventing the wheel each time..
the macd cross over system, thats another one you might want to put on your list

I never said I want to re-invent the wheel, I just don't see why I should not try what I think will work for me. My strategy should be for me and not to please veteran forum members.