This will be a 2 part series on my 2 Pivot Strategies
Introducing my scalping strategy in the 1st part followed by the swing entries in the second part.
Pivot and RSI Scalping strategy.
Basic Setup for this Strategy is as follows:-
* Traditional Pivots Set to include P, R1, R2 and S1,S2
* Relative Strength Index
* BBands For confluence
For a Introduction to Pivots see my Article on Pivots or watch my Youtube for an in depth Set up, The video for this set up will follow shortly but I like to write these so you get an idea of how all the different elements come together.
After you have setup the Pivots and got the Bbands and RSI on the chart it should look something like this.
Go Pro on Tradingview
The Setup of the Indicators will look like this:-
The Time frames on which you will be working are the 5min or 15min and the trades will be scalps only, also we will be trading Price action and with the trend ONLY.
The probability of price trading in the direction of the trend is higher and much safer
Once you have mastered the Entries you can start putting in some fades.
We will be Risking 5% to 8% per trade with tight stops.
Divergence
The Strategy is based on Divergence at Resistance or Support levels, so it is obviously very important that you understand Divergence and how to spot it.
There are 2 types of divergence and both work well with this strategy.
Regular Divergence
Most important thing to remember is when you spot Regular divergence you will be looking at fading the trend
Bullish Regular Divergence occurs when price is making Lower Lows but the oscillator is making Higher Lows, these normally happen at the end of a pull back
Bearish Regular Divergence occurs when price is making Higher Highs, however the Oscillator is making Lower Highs, this normally tends to happen when price is about to make a pullback
Hidden Divergence
Most important thing to remember is when you spot Hidden divergence you will be looking at taking a position to trade with trend as Hidden divergence is normally a sign of continuation
Bullish Hidden Divergence occurs when the market is in an uptrend and Price makes a Higher Low but he Oscillator makes a Lower Low
Bearish Hidden Divergence occurs when the market is trending down and Price makes a Lower High but the Oscillator makes a Higher High
Now that you have an understanding of the basics types of Divergence what we are looking for is how price interacts at Pivot levels in order to find confluence with the RSI Divergence at these levels
Lets take a look at some examples
Yesterday on larger Time Frames Bitcoin was in a trending market (Bullish)
We had 2 major opportunities to get into great Scalps
In a Bullish Trending Market we are looking for Regular Divergence at Pivot Levels to catch a Fade and Hidden Divergence at Pivot Levels to Long the Continuation
Below is a perfect example of both
The Stops are tight and Place Above/Below the New R1 S1 Levels whilst take Profits are placed at the end of the Range R2 S2
If you guys have any Questions please reply in the comments below or on Twitter in this Thread
I really enjoy trading these scalps on Bybit. Set your stops and Take profits as you enter a trade.
