Forex pivot points trading strategy

I don’t know about you but I don’t like spending all day in front of my trading screen, I want to have time to do other activities that I enjoy while making some trades in the background, so I will reveal a profitable trade – 1 hour training strategy and I will share how I find leading signals and how I know At the beginning of the day whether the market is worth trading or not and all this by spending only 30 minutes in the morning.

Forex pivot points trading strategy

Our List The speed of markets on lower time frames is a big problem for many traders, and all the trading decisions you make need to be done much faster. One solution to this problem is to trade on our time frame, as the 1-hour chart offers flexibility.

There is much less noise, and it generates enough trades that you have a lot of good opportunities to make money. This strategy involves finding the day trend based on the central pivot range, which is a leading indicator, and making trades around safe zones in the direction of the main trend using Mini Price By the end of this article, you will know at the beginning of the day whether to trade your market.

What direction will you follow in Forex trading?

The trend you will follow If I had to name my favorite indicator well, they are the pivot points, the pivot points are nothing but support and resistance based on the previous day’s high-low close and provide you with a framework for trading Trade by plotting the pivot points on your chart, they will show you the limits Where the price is likely to encounter support or resistance.

Unlike lagging indicators, pivot points do not change as you change your time frame. Once they are drawn on your chart at the market open, they remain in place. There is until the market closes in another aspect in which pivots are used by the big players.

I came to know about the concept of Central Pivot Range after reading The Logical Trader by Mark Fisher, the CPR is nothing but a range of three lines one above and one below the center Pivot Point of the Day The basic idea behind this indicator is that the trading range for a particular day captures everything about the market sentiment so it can be used This range is used to predict price movement in the following days.

How to read price action using the Centropia range?

When the CPR achieves higher highs it means the CPR is higher than the previous day which indicates that the particular market is in an uptrend When the CPR achieves lower highs which means the CPR is lower compared to the previous day this indicates that the market is in a downtrend as long as the price is higher than CPR, it is generally known as a bull day and as long as the price is trading below the CPR we are in a bear day, of course, this does not mean that if I see the price trading above the CPR then I will go and buy it. CPR is just a guideline.

I will show you later how to filter and find the best signals The wider the central pivot range is, the harder it is for the price to break the zone, this basically means that the wider central ranges are stronger than a stock with CPR, take a look at this chart, this was a day Wide from the CPR and when the price bounced into the area it found support and could not go below it and look at what happened when the CPR was narrow, the price broke on both sides of the area Stop orders are being hunted and there is no clear trend during the day,

Explaining sideways price movement in Forex

Sideways price action and a lot of consolidation, so if the CPR is very tight, the CPR is unlikely to offer a strong support or resistance area When the CPR is very tight I don’t pay much importance if the price gets close to it because it can easily break and break it, so remember that a narrow CPR It does not offer much support or resistance either when the central pivot range is wider often but not always like these days are range days as the price moves from one range to another throughout the day,

Look at this example, we have a strong move up, so the next day the CPR was completely white, we had a day range around this area, and remember the previous turn, a wide range means it is more difficult for the price to break the area another observation is that the narrow central pivot range It can lead to a very trending day and the white central pivot band can be a little quiet on the day marked by the range. In this example, you can see a very narrow range on the day which leads to a huge move during the day. Notice how the price was trending in one direction with a lot of… Of momentum and course after this strong trend day.

Forex trading in a wide range of activity

The next day was a wide range of activity with sideways price movement. This is an effective method of price analysis that is completely different from classic price action. Another high-probability setup is the new central pivot range. If on any day the price does not touch its CPR value, It will be considered a new CPR within the next two or three days.

Here is an example of the price making a strong move to the downside and the next day’s price action did not touch the CPR center, so this was an important new area to watch over the next several days,

Summary

Sometimes during the trading day, you will not see any candlesticks inside the CPR center but only a week or two entry inside the CPR area, this is also a very strong support or resistance area, this is an interesting fact I discovered after the backtest price respects the recovery level Free cardiopulmonary at the opening of the session compared to mid or late afternoon.