Hello guys. I wanted to ask you a couple of things about the use of pivot levels. Sometime following the generic rule to ignore buy setup near the first resistance R1 and ignoring setup to go short near the support S1 I lose many setups. At the moment I am trying to find my way of trading using the 60m timeframe and trading with Supply and Demand levels that shows me many times good setups when I am already in a sell zone or I am in a buy zone and I have setup that in theory goes against this rule.
Can someone try to give me a better understanding or show me a good resource to develop a trading strategy that uses pivots and the supply and demand levels accordingly.
Thanks in advance.
Not sure what “convential wisdom” has to say on how to trade or not trade pivot points.
Here’s what I like to do:
step 1: Find a good demand zone on a 1 hr chart
step 2: find a daily/weekly/monthly S1 pivot on a 1 hr chart.
step 3. if the “good demand zone” I find from step one…ALSO happens to overlap the daily/weekly/monthly S1 pivot,
I like to look to go long around that area. particularly in eur/usd (but all markets this is good)
step 4: if I see the 5 min chart make a nice “reversal” pattern when it hits this S1 level (like a “pinbar”, or a “bullish engulfing”… whatever bullish reversal pattern u like). I like to go long at the close of that candle.
So, I now have sup/dem, pivots, and current price action all indicating the same thing… long. So, i like to go long now when I see all of this.
I miss many many possible times to enter when price comes to S1…but there is no good demand zone there…
or when price comes to a good demand zone…but there is no S1 there…
or when price comes to a S1 and demand zone…but there is no good price action indicating a bullish price reversal is coming now…
I miss a lot of those. Yes sir. I sure do. I also make 100K plus per year trading the markets, I have between a 60%-75% win rate, and I haven’t had a losing month in over a year.
So again, I can’t speak to how others trade. I for one don’t care how they trade…as long as I can find a market for the other side of MY orders…i’m happy.
I miss a lot of potential setups. sure. but i don’t lose much… and I rarely have losing weeks…and almost never have losing months.
You decide what you want. Smooth equity growth, and a darn good shot at a career as a daytrader or even to get rich…
or, lots of trades.
The choice is yours. Of course, if you want to take a “buy setup” near the R1 pivot… I’m sure there are days when your buy order is my sell order. And on those days…i am happy to accept your trade as the liquidity I need to fill mine. 
Jay
Thank you Jay for the answer, it’s very helpful. I asked that question because I thought that with the trading rules that I gave to me I was missing many trades.
At the moment I consider the following levels to get me in a trade:
Supply Demand Level around S1 or R1 (if there is at least a weekly level to confirm)
Supply Demand Level around S2 or R2 (no need to get extra level to confirm).
Another point that I would like to understand is how to trade around the pivot level.
Sometime I use the pivot as target if I see the price action reversing and move towards the central pivot line.
The problem is that the cpp is to close to the entry and considering that’s the price target I miss again big moves.
I hope my english is clear enough to explain the point.
Thanks Jay.