No-Bs Forex Trading System Give Away Rights Ebook

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Pivot Levels

Floor traders love pivot points. They act as magnet for price movements. If you observe how price move during any trading session, you’ll notice that price often stalls or stops at pivot points before resuming its movement.

To calculate daily pivot points you need High, Low, and Close Price of the previous day.

Here are the formula for calculating daily pivot points:

Central Pivot Point (P) = (High + Low + Close)/3
Resistance Level 1 (R1) = 2xP – Low
Resistance Level 2 (R2) = P + (R1 - S1)
Resistance Level 3 (R3) = High + 2x(P - Low)
Support Level 1 (S1) = 2xP - High
Support Level 2 (S2) = P - (R1 - S1)
Support Level 3 (S3) = Low – 2x(High - P)

To calculate weekly pivot points, apply the same formula, but using High, Low, and Close Price of the previous week instead of the previous day.

Put everything together and generate entry signals and exit signals

This system is used on 15-minute and 4-hour timeframe. With 15- minute timeframe, daily pivot points are employed. Weekly pivot points are utilized when trading off 4-hour timeframe.

In this manual, I’ll present the entry signals for swing trading off 4- hour timeframe. We use the same techniques to generate entry signals on 15-minute timeframe but using daily pivots instead of weekly pivots.

Okay, let’s dive right in the meat of No-BS Trading System:

Buy Entry Signals: Three criteria must be fulfilled:

a. Price must be above 20-period Exponential Moving Average (EMA20) and EMA20 must be above 50-period Exponential Moving Average (EMA50).

b. Price moved past a pivot level (S1/S2/S3/P/R1/R2/R3) and retraced back to that level.

c. A hammer formed.

When the hammer candlestick closed, we enter at market price with three lots. Stop loss should be placed 10-20 pips below the Low of the hammer depending on the volatility of the currency pairs we’re trading.

Exit Signals:

a. When price moves in our favor the same distance as our stop loss we take one lot out. For example, if our stop loss is 50 pips away from entry price, when we have 50 pips in profit we exit one lot.

b. For the remaining two lots, we trail our stop loss a few pips (5- 10 pips) below EMA20. We let our profits run and let the market decide when our positions are closed.

For sell (short) entry and exit signals, the rules are obviously the opposite of the rules for buy (long) signals.

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