Pivot Trend System

Indicators:
Daily pivot,
5 SMA (red),
50 SMA (blue),
Parabolic, (step: 0.02, Max: 0.2),

Use these on 15 min chart

First step:
We will have to first indicate the direction of the trade. We will only place trade on that direction. To do this we will have to average the daily pivots.

Eg:
12 Aug pivot is @ 1.3821 (T)
11 Aug pivot is @ 1.3795 (T-1)
10 Aug pivot is @ 1.3742 (T-2)
7 Aug pivot is @ 1.3678 (T-3)
6 Aug pivot is @ 1.3628 (T-4)
(8 Aug and 9 Aug is sat and sun, non trading day)

To determine the trade on 12 Aug, we find the averages of:-

T, T-1, T-2 (we call this 3 day pivot ave)
T, T-1, T-2, T-3, T-4 (we call this 5 day pivot ave)

If today’s pivot (T) is greater than both averages (3 days and 5 days) we trade only long, short of opposite.

This example (12 Aug), is a long trade only.

Step 2:
After determining the direction, then we check if the following rules comply

For long trade (opposite for short)
Rule 1, day opening price must be above current day pivot
Rule 2, the 5 SMA (red) must be above the 50 SMA (blue)
Rule 3, the parabolic dot must be place under the candle

Other filters,
1) No trade on Monday. (I had backtested, most trades fails on Monday)
2) The two SMA must be at least 10 pips apart unless if the opening price of the day is less than 10 pips from the pivot.
3) If opening price is more than 30 pips from the pivot, then NO TRADE again. ( your stops will be too far away, not worth risking)

Open 3 positions on the start of the day, (I am using FXDD, don’t ask me about your time zone, I really have no clue) if all the above comply

Targets
Your targets shall be R1, R2 and R3 for long and S1, S2 and S3 for short.

Stop loss
shall be determine by the opening price and the daily pivot.
If daily open is less than 15 pips away from the pivot, then stop loss shall be 15 pips from pivot.
If daily open is more or equal to 15 pips away from the pivot, then stop loss shall be 5 pips from pivot.

© Help for New Traders