Simple strategy for day trading

As The strategy I have mentioned below is Not mine , I have read this some where in web. this is a very simple strategy for day trading.


* Open a Chart
* Add the Pivot Points
* Wait for the Price to Move Towards a Pivot Point
* Wait for the Price to Touch the Pivot Point
* Enter your Trade
* Wait for your Trade to Exit
* Repeat the Trade

Open a Chart:Open a 1 minute OHLC (Open, High, Low, and Close) bar chart of your market.

Add the Pivot Points: Add the daily pivot points.

Wait for the Price to Move Towards a Pivot Point:

Watch the market, and wait until the price is moving toward a pivot point. For a long trade, the price bars should be making new lows as they move towards the pivot point, and for a short trade the price bars should be making new highs as they move towards the pivot point.

Wait for the Price to Touch the Pivot Point:

Wait for the price to touch the pivot point, which happens when the price trades at the pivot point price.

Enter your Trade:

Enter your trade when the high (or low) of the first price bar that fails to make a new low (or high) is broken. The following list shows the steps required for both long and short entries.

Long Trade:

Price bar touches the pivot point.

Subsequent price bar fails to make a new low.

Subsequent price bar breaks the high of the previous price bar.

Short Trade:

Price bar touches the pivot point.

Subsequent price bar fails to make a new high.

Subsequent price bar breaks the low of the previous price bar.

The stop loss can be adjusted to use either the pivot point as the stop loss, or the high (or low) of the entry bar as the stop loss, depending upon the market being traded.

As soon as your entry order has been filled, make sure that your trading software has placed your target and stop loss orders, or place them manually if necessary. There is no default order type for either the target or stop loss,the recommendation is a limit order for the target, and a stop order for the stop loss.

Wait for your Trade to Exit.

Wait for the price to trade at your target or at your stop loss, and for either your target or stop loss order to get filled. The pivot point bounce trade can take anywhere from a few minutes to a couple of hours to reach your target or stop loss. Depending upon the market being traded, the target could be adjusted to be the next pivot point, and the stop loss could be adjusted to break even at a suitable time.

Repeat the Trade Repeat the trade as many times as necessary, until either your daily profit target is reached, or your market is no longer active.

Graphical explanation with examples would be better for above to understand.

Could you please make your theory clear siting graphs and examples. and tell us about your profit/loss status.

System not clearly expained..................! More explanation needed.................!

explain to me how to calculate the pivot points

Pivot points: please correct If I am wrong.........

Understanding Pivot Points

Pivot Points are those price levels that are most likely to act as levels of support and resistance on any given trading day. The most widely used formula for calculating pivot points is as follows:

H = previous day's high
L = previous day's low
C = previous day's close

Pivot Point = (H + L + C)/3
Resistance = 2*PP - L
Support = 2*PP - H

When the price moves through the known pivot point on increased volume it is most likely to continue current trend, and if the price hits the known pivot point but is unable to move through it is most likely to reverse the current trend.

When the advancing/declining price is not able to move through the known pivot point after two or more tries there is a good probability that it will start to decline/advance. Trading method in which a trader is waiting for a price to reverse after hitting S/R level is called swing trading. On the other hand if the advancing/declining price has easily moved through known S/R level there is a good probability that it will continue to advance/decline. Trading method in which a trader is looking for a price to continue to move in the same direction after moving through S/R level is called breakout trading.

I am attaching a pivot calculator to make the calculation easy .
ypu have to input high, low ,open and close price of previous day to get the data

View attachment 13019

A Picture can say 1000 words

What he really meant was one the price reaches a S/R and bounces off it, trade in the direction of the bounce.

Factual flaw is prices normally dont bounce off from any S/R point. So, how do you know which Pivot point to consider or a better question what is the best and the most reliable way to calculate PP?