Introduction

Thank you for downloading Pivot Point for Successful Trading. This is a free ebook and as such you
are free to share with friends and families that are interested in this business. If you paid for it, please
report to hassanismail1st@gmail.com. This is a trend-following system and it is very reliable as you will
soon find out. I know a lot of traders who form habits of downloading trading system for the fun of it.
They dont even try it on a demo let alone on their live accounts. Dont be one of them. Carefully go
through it and apply the strategies herein. When you have properly understood the system, you can use
it in combination with some of the strategies in your arsenal.
Once more, please dont just read and dump. Wisdom is the application of knowledge. Try it out on a
demo for at least 100 trades and decide if it is for keep or kick.
Without wasting much space, lets get into the meat of the discussion.

What are pivot points?

A pivot point is a price level of significance in technical analysis of a financial market that is used by
traders as a predictive indicator of market movement. A pivot point is calculated as an average of
significant prices (high, low, close) from the performance of a market in the prior trading period. If the
market in the following period closes above the pivot point it is usually evaluated as a bullish sentiment,
whereas trading below the pivot point is seen as bearish.
It is customary to calculate additional levels of support and resistance, below and above the pivot point,
respectively, by subtracting or adding price differentials calculated from previous trading ranges of the
market.
A pivot point and the associated support and resistance levels are often turning points for the direction
of price movement in a market. In an up-trending market, the pivot point and the resistance levels may
represent a ceiling level in price above which the uptrend is no longer sustainable and a reversal may
occur. In a declining market, a pivot point and the support levels may represent a low price level of
stability or a resistance to further decline.
The task of calculating these lines could be very daunting. For the purpose of this class, we are going to
be using a tool that automatically calculates the daily pivot points for us. Please click the here to
download it. Upload it into your mt4/experts/indicators folder. Launch your mt4 and insert the auto
pivot points as shown below;

Pivot Point for Successful Trading

Hassan Ismail

Page 1

If you get it right, your chart should be like this;

Pivot Point for Successful Trading

Hassan Ismail

Page 2

The red dotted lines represent the resistances while the green represent the support lines. The dotted
pink line is the pivot point in this case, the daily pivot point (dpp).

How To Use Pivot Points

I used to think that to be successful in forex trading, you need to be super smart and good in complex
analysis. You need to have and monitor 100 indicators on your charts. All this changed when I realized
that too much analysis leads to paralysis with this simple pivot point system. It has made me so lazy that
I dont even like seeing moving averages on my chart.
If you use this KISS (Keep it Simple Strategy) religiously, then youll be stunned at its efficacy. Remember,
not every system will keep vomiting positive pips yearly. Stick and tweak till it suits your style.

My Trading Style
I trade 5 pairs;
EURUSD
GBPUSD
EURJPY
GBPJPY
AUDUSD
I load the pivot point calculator on a demo account. I open the chart at 9:50pm NGT awaiting market
open at 10pm. Once market opens @ 10pm, I change the timeframe to 15mins so that the lines will
show clearly. I then switch to 4hours and wait for the lines to be clearly drawn. I watch to see where the
previous day candle closed, then I make my decision to buy or sell. I do this for all the pairs.
I pull the without setting the limits (stoploss and takeprofit). When I have successfully placed orders for
all the pairs, I then modify the orders to set my limits. By 10:20pm, am done. I close the mt4 platform
and go to bed. In the morning say by 7:00am, I check the market. If my limits have been met, thank God.
If not, Ill shutdown and go on with my offline businesses and return in the evening to check the trades.
If they are not met by 9:59pm, Ill wait to see the bias for the next day. If its in my direction, Ill leave
them else close and rejoin the new trend.
This is my trading style because I dont want to stay glued to the system which is susceptible to overtrading. You can choose the trading style that suits you though.

Pivot Point for Successful Trading

Hassan Ismail

Page 3

Entry
The daily pivot point is our trigger line. Once price closes above it in the previous day trading, it means
the bias for the present day is up, so we go long at market open.
If price closes below it in the previous day trading, it means the bias for the present day is down, so we
go short at market open.

Exit
We target 20-pips and use an sl of 50pips. I know the question is Isnt this a bad risk - reward ratio
(rrr)? Ill leave you to answer this after you have placed like 100 trades. The rule in forex is never use an
rrr less than 1:1, but they forget to tell us that there is an exception to every rule.
Use the rrr of 5:2 and gradually increase it when you have build confidence to 5:3, 5:4, 1:1 or even 1:2.

Buy trade

On the 13th of December, 2012, EU closed at 1.3076 above the daily pivot point @ 1.3072 and bought till
1.3172 until it was stopped by daily R3. That is a movement of about 96pips.

Pivot Point for Successful Trading

Hassan Ismail

Page 4

Sell trade

On 18th of October, 2012, EU closed at 1.3066 which is below the daily pivot point @ 1.3072. EU crashed
for about 50pips before it retraced at daily S2.

Conclusion
Pivot point is an effective trading system that has been in use from time immemorial. Dont just read
and dump but try it out.

Questions?
Feel free to join me at Daily Forex Trade Alerts on Facebook to ask questions and see my daily signals for
free. You can also mail hassanismail1st@gmail.com.

About The Author

Is this necessary? Check my facebook page.

Pivot Point for Successful Trading

Hassan Ismail

Page 5