Pivot Friday !

Friday, for reasons often explained but never really grasped, by this fledgling trader, is particularly volatile. It doesn't support my usual trading methodology and having previously had my fingers burned, I have endeavoured to stay away ...

However, it had occurred to me that Daily Pivots might be useful in identifying reversal points on shorter time-scale charts so I decided to have a go today on Cable; but, in accordance with an earlier rule, I only staked 'beer money'.

The chart below shows my results...


Having witnessed a fairly meaningful reversal at R1 I entered short with the intention of adding further positions as short term support barriers were broken. My target was the Daily pivot.

A total of 3 positions were taken and the trade was closed in toto, when the pair reversed off the third support, for a total of 111 pips.

This turned out to be a good time to get out as the pair never went lower and ended the day at R2.

On reflection there were potentially 3 successful pivot trades on offer during the day; a better one both before and after the one I took...

... which might be another string to one's bow on a trading day which had only served to damage my bottom line thus far.

Just a thought...