The idea behind Weekly Pivot Bounce Forex Trading Strategy is to use the support and resistance levels as possible areas where the currency price bounce off. If the price is below the pivot point level, then look for a bounce off one of the support levels. Moreover, look for a bounce off a resistance level with the next level as the target.
The major concern is how can we determine if the price is going to reverse or not?
To do so, the good old pin bar candlestick pattern indicator is very useful. This indicator gives excellent signals for a possible reversal.
The fact that sentiment changed within one period of time is a strong indication that the tides have changed and the reversal could be taking place. In addition to that, wicks are an indication of price rejection. Wicks touching a support and resistance level is an indication that the market could reject price at particular support or resistance.
Indicators: PivotWeekly
Timeframe: 1-hour chart and above
Currency Pair: any
Trading Session: at the time when the currency's market is open.
How to trade with Weekly Pivot Bounce Forex Trading Strategy?
Buy (Long) Trade Setup
Entry
- Price should be below the weekly pivot point (goldenrod)
- Wait for price to approach one of the support levels (red)
- Wait for a pin bar pattern to occur with the wick touching the support level
- Enter a buy market order at the close of the pin bar candle
Stop Loss
- Set the stop loss below the low of the pin bar candle
Take Profit
- Set the take profit target a few pips below the next level, either the pivot point or a support level
Sell (Short) Trade Setup
Entry
- Price should be above the weekly pivot point (goldenrod)
- Wait for price to approach one of the resistance levels (royal blue)
- Wait for a pin bar pattern to occur with the wick touching the resistance level
- Enter a buy market order at the close of the pin bar candle
Stop Loss
- Set the stop loss above the high of the pin bar candle
Take Profit
- Set the take profit target a few pips above the next level, either the pivot point or a resistance level
How to download and install an indicator?
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into the MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “Weekly Pivot Bounce Forex Trading Strategy” template to apply it on the chart.
Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.
