5# Pivot Points filtered by GMMA

Pivot high Win Rate Strategy

This trading strategy combines Pivot Levels with the Guppy Multiple Moving Average (GMMA) to identify high-probability trade setups. Pivot Levels provide key support and resistance areas, while GMMA filters out false signals and helps determine the trend's strength and direction. Additionally, the strategy includes an optional reversal entry at the S3 and R3 levels, filtered by GMMA, to capitalize on potential market reversals.

1. Setup:

Time Frame 15 min.

Currency pairs: any.

Intraday Strategy.

TradingView indicators:

Gmma by daisuke_gewinn

Pivot Points Levels by HPotter

Platfor of trading: MT4, MT5, TradingView, Nija Trader, Tradestation, all.

In the example I am using TradingView for convenience but it doesn't matter they are just standard indicators.

Pivot Points Calculation: Use the standard formula to calculate the Pivot Points (PP) and support/resistance levels (S1, S2, S3, R1, R2, R3) based on the previous day's high, low, and close.
GMMA: Plot the Guppy Multiple Moving Average, which consists of two sets of moving averages:
- Short-term Group: 3, 5, 8, 10, 12, and 15-period EMAs.
- Long-term Group: 30, 35, 40, 45, 50, and 60-period EMAs.

2. Entry Criteria:

A. Main Strategy:

Identify the Trend:
- Uptrend: The short-term GMMA is above the long-term GMMA, and both sets are expanding (i.e., moving apart).
- Downtrend: The short-term GMMA is below the long-term GMMA, and both sets are expanding.
- Consolidation/Weak Trend: If the GMMA bands are converging or flat, avoid trading.
Trade :
- Uptrend: Confirm that the market is in an uptrend by checking that the short-term GMMA (3, 5, 8, 10, 12, and 15-period EMAs) is above the long-term GMMA (30, 35, 40, 45, 50, and 60-period EMAs). Both GMMA groups should be expanding, indicating a strong trend.

Pending Orders:

Buy Stop at R1: Place a pending Buy Stop order just above the R1 level.
Buy Stop at R2: Similarly, place another Buy Stop order just above the R2 level.
Stop Loss:

For the Buy Stop order at R1, set the stop loss just below the Pivot Point (PP) or slightly below R1, depending on your risk tolerance.
For the Buy Stop order at R2, set the stop loss just below R1.

Take Profit:

For the R1 entry, consider setting the take profit at R2 or R3.
For the R2 entry, target R3 or use a trailing stop to capture more significant moves.

B. Downtrend Entry Using Pending Orders:

Trend Confirmation:
- Downtrend: Confirm that the market is in a downtrend by checking that the short-term GMMA is below the long-term GMMA. Both GMMA groups should be expanding, indicating a strong bearish trend.
Pending Orders:
- Sell Stop at S1: Place a pending Sell Stop order just below the S1 level.
- Sell Stop at S2: Place another Sell Stop order just below the S2 level.
Stop Loss:
- For the Sell Stop order at S1, set the stop loss just above the Pivot Point (PP) or slightly above S1, depending on your risk tolerance.
- For the Sell Stop order at S2, set the stop loss just above S1.
Take Profit:
- For the S1 entry, consider setting the take profit at S2 or S3.
- For the S2 entry, target S3 or use a trailing stop to capture more significant moves.

Optional Reversal Entry on S3 and R3:

If you’re looking for potential reversal trades at extreme Pivot Levels (S3 and R3), use the following method:

Reversal Setup:
- Bullish Reversal at S3: If the price approaches or touches S3 and the short-term GMMA starts crossing above the long-term GMMA, consider placing a Buy Limit order just above S3 to catch a potential reversal.
- Bearish Reversal at R3: If the price approaches or touches R3 and the short-term GMMA starts crossing below the long-term GMMA, consider placing a Sell Limit order just below R3 to catch a potential reversal.
Stop Loss:
- For S3 reversals, place the stop loss just below S3.
- For R3 reversals, place the stop loss just above R3.
Take Profit:
- Set the take profit at the next Pivot Level (e.g., S2 or R2) or use a trailing stop if the reversal gains momentum.

Summary:

Uptrend: Place pending Buy Stop orders at R1 and R2, with stop losses below the relevant Pivot Level and take profits at higher resistance levels.
Downtrend: Place pending Sell Stop orders at S1 and S2, with stop losses above the relevant Pivot Level and take profits at lower support levels.
Reversals: Consider reversal trades at S3 and R3 with appropriate risk management.

This refined entry strategy using pending orders allows for precise trade execution in line with market momentum and reduces the need for constant monitoring, making it suitable for various trading platforms.

Pivot GMMA MT4 indicators

Pivot GMMA.rar

compressed file archive 90.8 KB

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Comments: 0

5# System Pivot Forex Strategy

Submit by Janus Trader 14/04/ 2011

Time Frame: 5 Min

Currency Pairs: Majors

Indicator:Pivot Points

Strategy

Long Trades (see example below)

1) The currency price must trade in the vicinity of the oversold S1 or S2 support level.

2) Price isn't able to close below S1 or S2 (otherwise skip the trade).

3) Wait for the price to develop a bullish bias in the vicinity of S1 or S2

4) Now go long according to the bullish pattern's trading rules and place stop accordingly.

5) Target Profit five pips before the Pivot level

The EUR Dollar was not able to close below support1 (S1) on the chart. You could easily draw a falling trend line and wait for the price to close above the trend line, thus creating a bullish bias. This created a long trade entry at 1.4415 with stop loss 1,4395. and TP 1,4449.

Trading System

Pivots_Daily.rar

compressed file archive 6.6 KB

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Short Trades

1) The currency price must trade in the vicinity of the overbought R1 or R2 resistance level.

2) The price isn't able to close above R1 or R2 (otherwise skip the trade).

3) Wait for the price to develop a bearish bias in the vicinity of R1 or R2

4) Go short according to the bearish pattern's trading rules and place stop accordingly.

5) Target Profit.

The EUR Dollar was not able to close above the resistance (R1) on the chart. You could easily draw a falling trend line and wait for the price to close below the trend line, thus creating a bearish bias. This created a short trade entry at 1.4491 with stop loss 1,4504. and TP 1,4458.

Share your opinion, can help everyone to understand the forex strategy.

Comments: 1

#1
Terry (Thursday, 06 August 2015 21:08)

This strategy ties in sooooo well with human behavior in the markets, pivots are of course used by the big players, I am VERY excited about this strategy. I am going to write an EA this weekend based on this strategy and tie in some solid risk management principles. If you are interested to see how well it backtests just let me know - terry4715@gmail.com
Thank you for providing this little piece to my puzzle, I am convinced this will pull in BIG monthly returns.
Best,
Terry