Floating and Previous Day's Pivot + 9 Gold Coins Custom Forex Indicator
Two of my favorite indicators are my custom 9 Gold Coins Forex indicator along with a free indicator I happened upon, simply called "Previous Day and Floating Pivot". When combined these indicators do a wonderful job of showing you which side of a trade to be on, as well as when to stay on the sidelines. Add in some support and resistance or fibs for pinpointing entries and voila a trading system is born!
Today, in my opening trade I learned a lesson in always paying attention to these two indicators. I entered a Short trade on EURUSD that was stopped out for a loss. EURUSD did eventually head lower, but I entered prematurely. If I had been more cognizant at the time I should've easily seen that the only smart move was to stay on the sideline for the time being.
At the time I entered 9 Gold Coins was giving me mixed signals on various time frames. Although most time frames were showing a Short Trend (albeit somewhat weak), I did still have a time frame signaling Long and another signaling Flat, which definitely should have kept me from entering a trade at the moment. I got caught up in a Price movement, which can be a killer in Forex without indicator confirmation.
Also, at the time the Previous Day and Floating Pivot should've kept me from entering, but you had to really understand the relationship between Price, Floating Pivot, and Previous Day's Pivot to know why. I don't know that I fully realized the relationship and it's importance until today. Sometimes the best lessons are learned from a loss rather than a gain. That is why it is so essential that every trader keeps a trading journal.
For best confirmation of an entry the Pivot indicator should be as following. Long Entry - Floating Pivot > Prev. Day's Pivot, Price > Floating Pivot, and Price > Prev. Day's Pivot. Vice Versa for a Short Entry. Today I entered early because the Floating Pivot was still above the Prev. Day's Pivot at the time of entry.
I later made up for the loss and ended the day with a gain by finding a proper Short Entry on EURJPY. At this point 9GC was screaming to enter, Price action showed an entry, and the pivot indicator was aligned properly as well.
Just another lesson learned in the exciting world of Forex!
Today, in my opening trade I learned a lesson in always paying attention to these two indicators. I entered a Short trade on EURUSD that was stopped out for a loss. EURUSD did eventually head lower, but I entered prematurely. If I had been more cognizant at the time I should've easily seen that the only smart move was to stay on the sideline for the time being.
At the time I entered 9 Gold Coins was giving me mixed signals on various time frames. Although most time frames were showing a Short Trend (albeit somewhat weak), I did still have a time frame signaling Long and another signaling Flat, which definitely should have kept me from entering a trade at the moment. I got caught up in a Price movement, which can be a killer in Forex without indicator confirmation.
Also, at the time the Previous Day and Floating Pivot should've kept me from entering, but you had to really understand the relationship between Price, Floating Pivot, and Previous Day's Pivot to know why. I don't know that I fully realized the relationship and it's importance until today. Sometimes the best lessons are learned from a loss rather than a gain. That is why it is so essential that every trader keeps a trading journal.
For best confirmation of an entry the Pivot indicator should be as following. Long Entry - Floating Pivot > Prev. Day's Pivot, Price > Floating Pivot, and Price > Prev. Day's Pivot. Vice Versa for a Short Entry. Today I entered early because the Floating Pivot was still above the Prev. Day's Pivot at the time of entry.
I later made up for the loss and ended the day with a gain by finding a proper Short Entry on EURJPY. At this point 9GC was screaming to enter, Price action showed an entry, and the pivot indicator was aligned properly as well.
Just another lesson learned in the exciting world of Forex!
Labels: forex eurjpy, forex eurusd, forex pivot points, forex support resistance
posted by TopForexTrader at
7:58 AM
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