- my best trades were always done by 11AM CST
- my best trades used only support and resistance
- my best trades never risked a whole lot
- my best trades were initiated near pivot points
My best trades were with corn a few years back, so I went back and reviewed some of those trades. It turns out corn was in a bull run and all of my trades were long initiated at S1. The only markings on my charts were Pivot Points and I was only taking long trades at S1. Hmmmmm.....
So, to make a long story short I cleared my charts off and decided to start trading the pivots again. Here is the game plan.
Currency Pairs
Only trade pairs with spreads lower than 2 pips. Because my stops are going to be fairly tight, anything greater than 2 pips could cause problems. So for starters I am only going to be looking at EURUSD, EURJPY, USDCHF and GBPUSD (2.1 spread on OANDA but close enough)
Determine The Trend
For this strategy we only want to trade with the long term trend and to determine the long term trend I will use a daily chart although 3/4 hr chart works too. Draw a simple trend line.
Draw Pivot Point Lines
Anytime after 5pm EST. I'll grab the OHLC for the day and calculate tomorrow's pivot points. Once calculated - simply draw them on the chart.
Plan The Trades
Now it's time to plan tomorrow's trades.
If the trend for the pair is down, we will ONLY be looking to short around R1.
If the trend for the pair is up, we will ONLY be looking to get long around S1.
Write down the planned trade zones and get some rest! Tomorrow its time to trade!