Forex Trading Strategies 8

Currency Trading Strategy Number 41:
You should only take trades in and around pivot points – not in
between, as stated previously. When price action centers around a
pivot point, then take a look at the five minute to see what's going
on behind the scenes. Because, you should have been focused on
only the 15 min up to the point of price interaction with the pivot
point. Now, you want to pay attention to what price has up its
sleeve. In the above example (40), price faked out unsuspecting
trades when it trended up through the main pivot point, only to tank
as it did a price rejection bar on the 15 min chart. Of course, you
wouldn't have seen this coming if you were only looking at the 15
min. You would have seen the price reversal on the 5 min, and been
ready to head south with price.

Currency Trading Strategy Number 42:
The absence of divergence between MACD and price simply suggests
that MACD is confirming that the price trend is intact. But, don't be
fooled by this synergy. Please review strategy number 40 to see
what I mean.

Currency Trading Strategy Number 43:
Resistance levels (M3, R1, M4, and R2) are levels (or sell zones)
where sellers can be expected to outnumber buyers, and push price
lower. Correspondingly, support levels (S2, M1, S1, and M2) are
levels (or buy zones) where buyers can be expected to outnumber
sellers, and push price higher. These expectations are based on my
program's interpretation of buyer/seller interaction in the last
session. I think you will agree, after close inspection of the results of
my pivot point calculations, that price hesitates, pauses, and decides
on its course of action in and around pivot points. That's why you
should never enter trades in between pivot points, while price is in
transit, and in a state of transition.

Currency Trading Strategy Number 44:
Don't let anybody scare you off the forex by saying it is too risky. It
is actually less risky than trading any other market, that is
exchange-based. The forex cannot be "engineered," as stocks and
commodities can be. Also, being a true seamless 24-hour market,
there is less of a chance of your stops not kicking in. That's because
the forex is highly liquid, trading ~US$1.5 trillion each and every
day. It is the most liquid financial market in the world, bar none.
And, you get good fills, with fast execution times.

Currency Trading Strategy Number 45:
On May 23, we have had a rather unusual day, in that price
"reached" beyond its average range to put in 135 pips in two hours,
just above R2, after starting its climb at the main Pivot Point. The
Euro reversed course at the double top, and broke down through R2,
to mark the end of its run to achieve its average daily range, or
better in this case, within 12 hours of the start of trading for the
current session. You would have noticed, of course, that the double
top formation was also a "railway tracks" bar formation (if you just
happened to have been looking at bars, instead of candles). Those
two patterns occurring at the same time are a pretty powerful
indication that price has run its course. So, keep your eyes peeled for
price patterns per se, but also for combinations of patterns occurring
at the same time.