Trading EURUSD Forex Pair using pivot levels nets 75 pips this morning. Using the 45 minute chart, I noticed that price was at the pivot level (using the standing pivot indicator in NinjaTrader). Price was unable to maintain any action above the pivot level previously and then closed below it. Seeing a sweet spot between the Pivot Line and the S1 line, which was also confirmed because price was trading under the Average True Range Stop indicator and there was no support for price until it reached the 180 minute congestion dot (green line on the chart in the video), I opted to go short. I set a profit target just above the green line for 75 pips of profit. The target was hit and I banked 75 pips.
One thing to mention, I did have confidence in the profit target being achieved because the THD ADX was bright red (indicating a trending market) but the histogram bars were not magenta (indicating a potential retracement if a peak forms). The selling volume continued to show selling pressure with no substantial divergence. Overall, great conditions for the target being achieved. I used the prior bar high (offset by 5 ticks) to ensure that the trade did not go against me. In other words, as price moved in my direction, the stop was moved in my direction as well.
In addition to the forex position, I also had a binary option position for expiration at 11am New York time (going out one strike price). Although I did not record that position, you can see how I use the pivot levels in Nadex for trading the EURUSD forex pair using binary options (article will be published on Thursday morning) by clicking here.
In the short video below, I show how easily it was to identify the trade and take profits using the Pivot Levels with the ATR and congestion zones.