Been reading and watching more webinars over the last few days. There are 2 in particular that are awesome. One on Trader Psychology and one on Pivot levels and time of day, i.e. most volatile times and importance of S1/R1 levels at major market opens.
Built alot of charts today in TS II with Monthly Pivot levels on Weekly charts and Weekly Pivots on Daily and 4 hour charts. Main premise for trading with the Pivot and Time of Day webinar is :-
1. If pair is in uptrend, and it is sitting at a daily S1 level around a major session open, mainly UK or US Open, then go long.
2. If a pair is in uptrend and it is sitting at a daily R1 level, then go short on a US/UK Open.
3. A bounce of S1 in an open should at least take it to P, and preferably up to R1 or thereabouts.
4. A bounce of R1 in an open should at least take it to P, and preferably to S1.
There is more to this, as midpoint in pivots also take importance. I wont write too much as I only understood it today. Now I'm not promoting a system, I am just quite amazed that my first trade following this rules, was unbelievably accurate.
Oops!! Trade Idea was good, but see now that the actual discussion in the webinar talked about S1 or R1 at an open being significant. I made the mistake of going long on the P, no directionaly bias or clues at a P level.
Anyway, this all happened while I was at my 2 sons indoor soccer matches. Got back and saw it had bounced off 1.3550 (S1) for about 2 hours. Went Long before US open and thank you very much for allowing me to finish my trading week on a high! :-)
So in 2 trades, I entered long at Pivot, got stopped out at S1. Went long on break up from S1 and took profit at just below R1. Is this a TEXTBOOK trade or what.
I should not have taken the 1st trade, entries at the P Pivot level has much lower probabilty of direction, unless trend is very strong.
Now, resist the temptation to trade anymore tonight, as this week I am ahead in my trades.
Happy trading for next week.