Pivots Strategy Trading System For MT4
The Pivots Strategy Trading System For MT4 is based on the standard pivotal points algorithm. In this system, RSIOMA 2 (5,1,0,4,1), DB pivots strategy, PB Direction, and non-lag ma V.7.1 35 filters 0.5 are going to act as the main indicators to pin out the trade signals. The best part of using these indicators is that you can take the trades in any time frame. But for our convenience, we will be looking to find the signals in the M30 or the H1 time frame only. Studies have shown that these are the two most critical time frame which maximizes the efficiency of the Pivots Strategy Trading System. In the main chart, the pivot lines will be placed with the red, green, and aqua colored lines. These lines are going to act more like a stairway providing dynamic support and resistance.
Investors having fair knowledge about the price action signal can gain a significant advantage by using the pivot levels. The trade filtering process is done via the RSIOMA indicator. This indicator tells us about the market momentum via the stranded yellow and blue signal line. Below the signal line, we have small colored bars. The blue bar stands for the bullish rally and the red bar suggests the price is ready to fall. Now you have the basic knowledge about the template interface for this system. Let’s start learning about the instrument selection process for the Pivots Strategy Trading System.
Selecting the trading instrument
These are the most vital steps in becoming a successful trader while using the Pivots Strategy Trading System. Many people often ignore the instrument selection process as the system is capable of handling any asset at any moment as the data analysis will be done in the M30 and H1 time frame only. Though it's true by selecting the instrument based on critical criteria, we can uphold our success rate to a great extent. For instance, we should be picking the instrument when it is trending in nature. If you notice the horizontal pivot lines are placed with a very little distance, there is no reason to take the trades as the trades have to deal with many obstacles.
Picking the trending asset provides a better profit-making opportunity. You can open the trades in the path of least resistance and improve the accuracy of the system to a great extent. And try to keep yourself synchronized with the economic calendar so that you can make better decisions. News event acts as the prime catalyst for the market volatility. So, taking the trades right during the FOMC meeting minutes or ECB press conference will place in a vulnerable situation. These are the moment when the price exhibits intense spike and hunt down the stop loss.
Pivots Strategy Trading System For MT4 - Long trade setup
The professional traders use the Pivots Strategy Trading System to trade with the trend only. To take the long trade, you need to be sure that the overall momentum is bullish. For that, have a look at the color of the Non-lag MA with period 35. If it is colored in green, we can assume the market is making new highs by suppressing the bears. Wait for a minor bearish correction in the price which will end after hitting a pivot level. As the price hit the pivot level, we will notice the change in the slope in the Non-lag Ma. The bar must have a closing price above the pivot level to convince us to move to the next stage.
For the trade filtering process, we will be using the RSIOMA indicator. The signal line should exhibit a strong ascending curve from the 20 levels. Below the signal line, we will notice small blue bars. This blue bar is the final confirmation to take our trade. Open the long trade with a stop loss below the support level. The take profit will be set for 40 pips in major currency pairs. But if the trade is taken in exotic or cross currency pairs, the TP will be 60 pips. And do not forget to keep the risk factor low while using the Pivots Strategy Trading System.
Pivots Strategy Trading System For MT4 -Short trade setup
We have already told that Pivots Strategy Trading System works more efficiently while the trades are taken with the trend. But people who are skilled in analyzing the price action signal can trade the reversal. For that, they need to switch to the candlestick chart. The next step is to identify a bearish price action signal at the resistance line. Inside the bar, pin bar, bearish morning star, doji followed by a bearish candle, etc. are the most promising bearish PA for taking the short trade. As the PA is identified, we should see the color in the non-lag ma has changed to red. Now we will wait for the price to test the Non-lag red MA.
As the price test the non-lag red MA, we will evaluate the reading from the RSIOMA indicator. In the indicator panel, we should notice the signal lines if sharply falling. In the ideal case, we will also spot the bearish cross in the blue and yellow signal line. This means the blue signal line will cross below the yellow color signal line during the rejection of the resistance level. Right below the indicator panel, we will notice consecutive red bars and this will act as a strong confirmation to open a new short trade. The SL will be placed above the bearish PA and the take profit is set to the nearest pivot line.
While using the Pivots Strategy Trading System, you have to be extremely cautious about the risk to reward ratio. The minimum RR ratio for the trade should be 1:2. Those who will take the trades with the PA signal can aim for a 1:3 risk to reward ratio. Regarding the lot size calculation, investors are requested to trade with 1% risk. Though many strategies allow 2% risk exposure, in this case, we will stick to the most conservative trading technique.
Dealing with the market with the conservative method has a unique advantage. For instance, we can afford to lose trades without getting frustrated. Losing trades are very common and we can never avoid it. But if we deal with the market with 1% risk exposure, we will be more confident with our approach. After using the trading system for a few months, we will realize the importance of the conservative trading technique. Thus we will master the perfect technique to use the Pivots Strategy Trading System systematically.
Pivots Strategy Trading System For MT4 - Conclusion
Elite traders are extremely skilled in managing their risks. While using the Pivots Strategy Trading System, you should not be worried about the winning trades. Always be ready to embrace the losing orders. In short, you have to prepare to deal with the worst-case scenario. Having zero expectations from the market will help us to set realistic goals in the market. Once you start investing your money with rational logic and using a premium trading strategy, you will become a confident trader.
Becoming confident is good but overconfidence can lead to disasters. If you want to keep your fund safe, you must learn to take the trades with very low risk. Try to avoid aggressively taking the trades and limit the number of trades that you will execute per day. Try to learn more about risk management techniques as it will show the easy path to become a successful trader. Stop looking for the trade signals in tons of assets. Make a list of your favorite currency pairs so that you can execute the trades without evaluating the data in all major and minor currency pairs. Be smart and take precise steps to create a safe path for trading.
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