Hey Everyone,
To get the basic principles of this strategy please refer to [B]Part I of this System[/B].
Basically here I will explain the PVSH, PVSL entry & exit considerations.
Let’s go back a bit. Remember that the PVSH/PVSL Structure consists of 5 bars, the middle bar being the pivot, which is what we primarily trade AND a PVSH/PVSL cannot be traded until the structure is completed (when the 5th bar closes) otherwise we have a premature/more risky entry.
We basically sell when there is a buy up towards a PVSH and buy when there is sell down towards a PVSL.
Looking more closely at the fractal structure itself, we understand that a PVSH is where buyers paused or topped out. Therefore resistance is created in this area.
A PVSH will see resistance at (1. The highest BULLISH OPEN PRICE IN THE FRACTAL STRUCTURE [B]or[/B] (2. The highest BEARISH OPEN PRICE IN ANY PVSL STRUCTURE CLOSE TO THE PVSH STRUCTURE [IF ANY]
In such an instance, we would be provided a more accurate calculation of the entry price on a PVSH SELL SETUP. [B]PVSH SELL EXAMPLE OUTLINED IN POST #2[/B]
Conversely, a PVSL will see support at (1. The lowest BEARISH OPEN PRICE IN THE FRACTAL STRUCTURE or (2. The lowest BULLISH OPEN PRICE IN ANY PVSH STRUCTURE CLOSE TO THE PVSL STRUCTURE [IF ANY]
Entries would therefore be at any one or both of these levels for a better LONG trade.
[B]PVSL BUY EXAMPLE OUTLINED IN POST#3[/B]
Our standard entry would be at the low of the pivot bar in the PVSH structure, however after testing at the designated resistance levels, we find a better, less risky, more profitable entry.
In the example below we again see how calculating our entries in this way not only allows us to better plan our trades, but also significantly reduces our risk.
Our standard entry would be at the PVSL HIGH, which would still yield a profitable trade, however with more risks and less profit.
Planning exit is just as important as planning your exit.
Always pay attention to the resistance/support levels that your trade is approaching based on the information in the posts 1-3. See an example below…
This is a better approach to planned exits, while targets may extend, these exit levels will help us determine where to protect our trade, lock profits etc.
In this example we can clearly see how entry at the PVSL HIGH would have been a horrible trade and how well the calculated support worked out. Additionally, we see where the exit plan is easier and clearer at the highest resistance based on our calculated S&R Approach.
Hi Bank, great idea starting Part II! Thanks for these examples they were helpful
GM Everyone!
I am long the EURUSD H4 at both the highlighted PVSL SUPPORT areas.
Look at how this EURUSD long goes up to the most recent PVSH’s resistance and stalls, so I can at this point either protect my trade or exit.
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Gm Bank, i have pending orders to long EURUSD and NZDUSD at 1182 and 7235 respectively (4hr PVSL)
Hey swallow, I see support at 1166 from the close by PVSH one EURUSD.
Short NZDJPY PVSH RESISTANCE.
Sell Limit at close by PVSL resistance on GBPJPY H4.
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Short EURJPY @ H4 PVSH RESISTANCE.
Yup, and it bounced off that level nicely
Keeping on eye on USDCAD 4hr. Potential for a short if price breaks the PVSH’s low.
Cool cool! Stick to your trade plan…just a point to note.
Gm everyone…I’m long the Gbpusd on h4 pvsh support, long nzdusd on h4 pvsl support. Gbpjpy pending order cancelled…setup no longer valid as picture changed over night.
USDCAD pattern no longer valid.
EURUSD stopped out -23pips