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Forex Trading Strategy using Daily Fibonacci Pivot

The actual Daily Fibonacci Pivot Strategy utilizes standard Fibonacci retracements within confluence using the daily pivot levels to get trade records. My favored parameters would be the 38% or even 50% Fibonacci amounts in confluence using the daily main pivot. The good examples following display entries in the 38%, 50% as well as 62% Fibonacci retracement amounts in confluence using the daily main pivot.

Just like all free of charge forex methods, there tend to be many feasible interpretations as well as variations. My particular undertake this strategy is really as follows:

  • look for an entry on any currency pair where the average true range for the last five day period has been exceeded in the previous day’s trading session
  • at the start of the current trading session draw fibs:
    1. – from the previous days low to high, if price is currently above the current day’s central pivot
    1. – from the previous day’s high to low, if price is currently below the current day’s central pivot
  • look for a confluence of Fibonacci retracement levels with the daily central pivot
  • In the event that price retraces towards the confluence recognized, either enter at market or await a confirmatory candle signal to occur in the confluence prior to entry. Certainly, it is actually more dangerous to key in before obtaining the confirmatory transmission, but this approach provides greater feasible reward in order to risk percentage.

Let’s have a look at a few charts to see how this works.

The first chart shows a long entry at the confluence of the 38% Fibonacci retracement and the daily central pivot:

Free Forex Strategies: Fibonacci/Pivot Long Entry 1

It had been possible in order to enter in either case here, either through buying in the first touch of this level, or awaiting the morning star candle formation to create. Both entries might have given the possible target in the 127% Fibonacci expansion level, that was easily arrived at.

The advised stop loss with regard to these deals is at the rear of the Fibonacci degree one level from where a person take the actual trade. In this instance it would add up to the 50% retracement degree, with several pips additional thrown set for buffering.

The following trade exhibits the change setup from the previous trade, having a sell occurring in the confluence from the 38% retracement and also the daily main pivot:

Free Forex Strategies: Fibonacci/Pivot Short Entry 1

This was a nice set up given the big drop that occurred in the previous trading session. That drop signified a change in sentiment which would have added weight to the decision to sell.

Another example, again, a sell after a long run down the day before:

Free Forex Strategies: Fibonacci/Pivot Short Entry

This time around the sell occurs in the 50% retracement degree, although it’s not in ideal confluence using the daily main pivot. Nevertheless, a good evening star pattern happened with both daily main pivot and also the 50% retracement degree being respected just before entry,

The final example exhibits a confluence from the central pivot using the 62% retracement degree, plus aged lows in the left from the chart:

Free Forex Strategies: Fibonacci/Pivot Short Entry 3

This really is an example to the fact that any pivot level may be used in confluence using the daily main pivot. In this instance price retraced to once again retest the actual entry-level on the following day, but you ought to have had profit removed from the trade at that time, if lacking exited from full revenue.

As usually with any kind of new strategy, and particularly free forex methods, remember to completely back make sure live test inside a demo account prior to going live using this play, if you choose it’s a good fit for you personally.

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