Daily Fibonacci Pivot Strategy” Intraday Forex trading strategy
The “Daily Fibonacci Pivot Strategy” uses the standard Fibonacci grid in combination with the daily beer levels (pivot point) to get trade entrances. The preferred parameters are Fibonacci levels of 38.2%, 61.8% or 50%.
The strategy can be applied to intraday trading on charts M15 and M30. Any currency pairs are used. Forex brokers are better suited for scalping. There are many possible interpretations and changes in this Forex strategy. Each trader chooses specific solutions according to his or her preferences. The important thing is that the levels of beer and Fibonacci work well on their own, and in combination give even greater effect.
In addition to the Fibonacci grid, any indicator of daily beer is used. One of these indicators, together with the template, can be downloaded from the link at the bottom of the article. The template uses the standard ATR (Average Daily Range) indicator to quickly identify the appropriate pair
We select any currency pair, where the average true range during the last five-day period was exceeded at the previous day’s trading session.
At the beginning of the trading session, stretch the Fibonacci grid:
– from the last day’s low to the high if the price is above the current day’s beer
– from the maximum of the previous day to the minimum if the price is below the current day’s beer
We’re looking for a fusion of Fibonacci recovery levels with beer levels. If the price is near a certain level, you can enter the market or wait for a confirmation signal from the candlestick before entering. Obviously, it is more risky to enter before a confirmation signal is received, but such an approach allows for greater profit.
Opening and closing of positions, Take Profit, Stop Loss and the number of orders in this strategy depend on each case. If, for example, a position is opened at a level of 38.2%, then the stop loss can be set at 50% or above the local minimum/maximum. Take Profit can be set at 100%, 138.2% or 161.8% as well as support and resistance levels. Let’s take a look at the diagrams to see how it works.
In this case, at the opening of the day the price was above the beer line. After the tension of the Fibonacci net, the beer line coincided with the 61.8% level. In theory, the price could have been adjusted, and that’s what happened. Quotes fell to the level of beer merger and 61.8% Fibonacci. The figure shows the buying and setting zones of profit orders. The stop-loss here had to be set at 38.2% or 50%.
This figure shows a pretty simple example of how to log on to the sales. The day opened below the beer level, and the Fibonacci level of 61.8% coincided with this level. You could sell it right away, or wait for a 100% breakthrough. The take-profit here could be set at 161.8% and the stop-loss at 61.8% or 50%.
As always, with any new strategy, do not forget to test it on the history and demo account.