Dec 10

Daily Fibonacci Pivot Forex Trading Strategy

The Daily Fibonacci Pivot forex trading strategy is a kind of strategy which is combining the Fibonacci retracements and extensions with pivots. The pivots can be daily pivots, weekly pivots, monthly pivots and even yearly pivots. However, the most common form of this strategy is using the combinations with the pivots that you can use daily. As you are growing skill in the world of trading currency, you will be able to extend the idea of using the pivots to longer timeframes as you like. You can go weekly, monthly, and even yearly. If you are interested in this forex trading strategy, below is more information for you.

Daili Fibonacci Pivot Trading Strategy

Daili Fibonacci Pivot Trading Strategy

How to Use the Strategy?

To use the strategy, you need to find the currency pair that has the average true range (approximately for the last four to five day) and you have to make sure that the true range of that currency pair is exceeded compared to the trading session of the previous day. Then, if the price of the currency pair is above the central pivot of that day, you can go low to high. If it is below, you can go high to low. After that, you can seek the Fibonacci retracement levels’ confluence. It will be better to wait for the confirmatory candle signal before you place your entry. The illustration below can get you the basic picture of this strategy.

The Tips of Using This Strategy

This strategy is relatively new and that is why if you are not sure about the strategy, you can always use your demo account before you try to go live with this strategy. If you think the strategy can make you play smoothly in the market both when you do the entry or exit, you can totally use the forex trading strategy. However, if the strategy does not comfort you, you can find for alternate options.

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