We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Real Time News
  • We are a few pips away from seeing a $EURUSD close above or below Friday's end. As of Friday, 9 of the past 10 trading days were lower. An extreme with some interesting pedigree: https://t.co/qxYhbzZuVZ
  • RT @EUCouncilPress: #Eurogroup is over! Watch the press conference with @mariofcenteno, @PaoloGentiloni and @ESM_Press Regling LIVE at +/…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.87%, while traders in USD/CAD are at opposite extremes with 83.13%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/54YP4FM9nw
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Silver: 0.30% Oil - US Crude: 0.18% Gold: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/TmyP5d1RBD
  • Here is the MSCI's World Equities ETF overlaid with the aggregate stimulus from the Fed, ECB, BOE and BOJ. That stimulus is level out despite a rise from 3 of those 4, largely due to rising US Dollar (the pricing currency here) https://t.co/GlxkPs4xZN
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.16% 🇨🇭CHF: 0.11% 🇳🇿NZD: 0.10% 🇪🇺EUR: 0.07% 🇯🇵JPY: -0.12% 🇬🇧GBP: -0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/COoUBRv8Z5
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: US 500: 0.28% Wall Street: 0.27% Germany 30: 0.01% France 40: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/fbpBesDErN
  • Contrary to standard belief, greed and profits are often inversely correlated in trading. Remaining disciplined is key to a successful trading strategy. Learn how to control greed when trading here: https://t.co/RvxpJotFf9 https://t.co/87FHc0QKOo
  • At the Eurogroup's meeting today, the coronavirus was mentioned as a temporary curb to growth
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.15% 🇨🇭CHF: 0.03% 🇦🇺AUD: 0.02% 🇳🇿NZD: -0.01% 🇯🇵JPY: -0.11% 🇬🇧GBP: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/P0mJKN0ehv
Scalping With Pivot Points

Scalping With Pivot Points

2013-10-09 19:00:00
Walker England, Forex Trading Instructor
Share:

Talking Points:

  • Forex scalpers benefit from finding support and resistance levels.
  • Learn to enter Forex retracements with Camarilla pivots.
  • Trade price action breakouts using S4 and R4 Camarilla pivots.

Forex traders have a variety of options when it comes to trading. However, those traders who are looking to peruse Scalping opportunities will most directly benefits from identifying important inter day price action including levels of support and resistance.

Below we can see an existing downtrend in the EURNZD. Today we will look at Camarilla Pivots and how they can help Forex scalpers interpret today’s price action.

So let’s get started!

Learn Forex –EURNZD 30 Minute Trend

Scalping_With_Pivot_Points_body_Picture_2.png, Scalping With Pivot Points

(Created using FXCM’s Marketscope 2.0 charts)

Trading with Camarilla Pivots

Camarilla pivots can help clear up which technical levels will be important to a day trader. Camarilla pivots are different from normal Traditional Pivots. Due to their calculations, Camarilla pivots set levels of support and resistance much closer to each other, leading them to more relevant when day trading. When added to the chart, they will display 4 key levels of resistance (R1-4) and 4 key levels of price support (S1-4)

Below you will find several opportunities traders can look for when using Camarilla pivots in their trading. The most prevalent methods of trading a downtrend include, retracement swings at R3 or a breakout of the established S4 level.

Learn Forex – EURNZD with Camarilla Pivots

Scalping_With_Pivot_Points_body_Picture_1.png, Scalping With Pivot Points

(Created using FXCM’s Marketscope 2.0 charts)

Trading a Retracement

The first methodology of trading pivots is to look for a retracement. Above we can see the first opportunity to trade the EURNZD at the R3 level or resistance. When price approaches either a R3 or S3 level, traders generally feel there is a chance of an impending reversal! Here price moved up to resistance overnight, prior to dropping down to fresh daily lows. With R3 acting as a ceiling for price allowed day traders an opportunity to sell the market back in the direction of the prevailing trend. This price can be reversed in an uptrend, with traders looking to buy the S3 level of support.

Trading a Breakout

The second methodology of trading Camarilla Pivots is by looking for a breakout. Above we can see a breakout opportunity on the EURNZD after price broke the S4 support pivot. S4 represents the last line of daily support for a currency. In a downtrend, traders will look to sell below this value as price traverses towards lower lows. This process can be inverted for an uptrend, looking to sell a breakout above the R4 resistance pivot.

These are just two of the most popular ways to approach scalping Forex pairs with pivot points. We will continue this discussion next week, as we review determining Risk/Reward ratios using Camarilla Pivots.

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com . Follow me on Twitter at @WEnglandFX.

New to the FX market? Learn to trade like a professional with DailyFX!

Signup for this free “Trade like a Professional” certificate course , to help you get up to speed on Forex market basics. You can master the material all while earning your completion certificate.

Register HERE to start your Forex learning now!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.