Title
Pivot Option Strategy
Element(s)
  • Pivot (D1)
  • MACD (25, 41, 21)
  • Awesome Oscillator
  • RSI (8)

Call/Higher/No-Touch signal

On downward trend, Assuming that MACD or AO shows Convergence and Oversold condition and price is reaching over a resistance line acquired from Pivot (on daily time-frame), if RSI line crosses its level 30 toward top then a Buy signal is generated.

If price reaches Entry Price of given signal will become active. In case that traders cannot place the Call order on given contract when price passes the Entry Price, then given Call signal becomes invalid. On a special occasion, after price crosses the Entry Price if it bounces back toward bottom and proceeds lower than Entry Price before ordering Call contract becomes unavailable then given Call signal remains valid and reliable.

Concerning Higher contract, given signal forecasts that price may rise over a certain value (Target Price) and stays higher than Target Price before expiration time.

Regarding No-Touch contract, generated signal predicts that price may fluctuate below certain amount (Target Price) without touching it before expiration time.

  • Entry Price: Over High price of the last candlestick
  • Take Profit: Length of the candlestick over Entry Price

Put/Lower/No-Touch signal

On upward trend, considering that MACD or AO shows Divergence and Overbought condition and price is reaching below a resistance line acquired from Pivot (on daily time-frame), if RSI line crosses its level 70 toward bottom then a Sell signal is generated.

If price reaches Entry Price given signal will become active. In case that traders cannot place the Put order on given contract when price passes the Entry Price, then given Put signal becomes invalid. On a special occasion, after price crosses the Entry Price if it bounces back toward top and proceeds higher than Entry Price before ordering Put contract becomes unavailable then given Put signal remains valid and reliable.

Concerning Lower contract, given signal forecasts that price may fall below a certain value (Target Price) and stays lower than Target Price before expiration time.

Regarding No-Touch contract, generated signal predicts that price may fluctuate higher than certain amount (Target Price) without touching it before expiration time.

  • Entry Price: Low Price of last candlestick
  • Target Price: Length of last candlestick below Entry Price

Pivot Option Strategy

Copyright © 2011-2017 PFOREX.COM | Professional Forex School | Cashback and Rebates