Support and Resistance Scalping with Daily Pivots
This strategy simplifies market structure by using the Daily Pivot Indicator to automatically draw key support and resistance levels. Instead of subjective lines, this system relies on mathematical pivot points to trigger breakout trades on the M30 timeframe.
Strategy Profile
Timeframe
M30
Pairs
EURUSD, GBPUSD
Tool
Daily Pivot
1. Indicator Setup
This strategy requires a Daily Pivot Indicator installed on your MT4/MT5. These indicators calculate the day’s central pivot, support, and resistance based on the previous day’s High, Low, and Close.
Tip: Understanding how Pivot Points work is essential for validating these levels.
Alternatively, you can manually calculate these levels using the Pivot Point calculator available on the FXRebate website.
2. Long Entry (Buy) Rules
A Buy signal is triggered by a bullish breakout of resistance:
- Identify the blue resistance line generated by the indicator.
- Trigger: Wait for a candle to break and close ABOVE the blue resistance level.
- Confirmation: Ensure the breakout candle has a strong body.
3. Short Entry (Sell) Rules
A Sell signal is triggered by a bearish breakout of support:
- Identify the blue support line generated by the indicator.
- Trigger: Wait for a candle to break and close BELOW the blue support level.
Risk Management
- Stop Loss: Fixed at 20 points (pips) from entry.
- Take Profit: Fixed at 35 points (pips).
- Ratio: This offers a positive Risk:Reward ratio of nearly 1:1.75.
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