The Pivot buy Sell
trading using pivot points to generate trading signals.

**Pivot points**are a method of predicting support and resistance levels for the future.Using mathematical formulas the trader is able to know today, what will be the most powerful support and resistance levels tomorrow.
Don't worry, you don't
need to calculate anything manually- there are indicators in any

trading platform that do
that automatically.

If you are interested,
here are the formula for Pivot calculation:

H – Yesterday's Highest
Price

L – Yesterday's Lowest
price

C – Yesterday's Close
Price

P = (H + L + C) / 3.

R 1 = 2×P − L

S 1 = 2×P − H

R 2 = P + (H − L)

S 2 = P − (H − L)

R 3 = P + 2×(H − L)

S 3 = P − 2×(H − L)

Each of these points is a
PIVOT POINT. The

**R points are Resistance levels**that we will trade only with LONG trades,**and the S points are Support level**that we will trade only with SHORT trades.
Each day there are 5
pivot levels that we can trade. However we don't trade any pivot
levels (it has to meet our filters).

First step is to confirm
that the pivot level is strong.

We confirm that by
demanding that price was in 30-25 pips distance from the pivot level
at some point of the day. This makes sure that the pivot level is
strong enough to trade:

After we confirm that the
pivot level is good, we proceed by putting a trade order:

if the level is a

**RESISTANCE**level we will enter a long trade when the pivot is broken, if the level is a**SUPPORT**level we will enter a short trade when the level is broken.
For long trades will put
a buy order 1 pip above the level, and for short trades we will

put a sell order 1 pip
below the order.

So if we have a
Resistance pivot at 1.3119 the buy order will be placed at 1.3120

If we have a Support
pivot at 1.3019 the sell order will be placed at 1.3018, and so on.

**Stop Loss**

We use a 20 pips trailing
stop. This means that if price goes into +5 pips profit our stop loss
will move 5 pips upwards, so the maximum price can go back before we
exit the trade is 20 pips.

**Take Profit**

We exit half of the trade
at +26 pips profit, and half the profit at +52 pips profit.

This is designed to get
us in profit AND to take advantage of big moves.
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