1. NZDUSD (5Min Chart) – Pivot Trade Short 21.05.2014 – The Kiwi, having spent so much time on the daily timeframe heading higher, eventually topped out and provided the lower high and lower low needed to consider trading it short. Price was fast approaching a big support level on the daily chart so only a lower timeframe trade was suffice to squeeze out a decent profit so traders dropped down onto the 5min pivot strategy to look for an efficient entry. This came on Wednesday with a clean retracement to the pivot point where it found strong resistance before reversing strongly and most importantly hitting its +1.78% target within a few hours.
2. EURGBP (5Min Chart) – Pivot Trade Short 21.05.2014 – As has been discussed in recent foreign market reports, the GBP has been much stronger than the EUR which has led to traders focusing on taking advantage of this breakdown in correlation. The daily chart last week highlighted a shallow retracement to a horizontal level which price reacted to before heading lower this week. Forex currency traders were then heading down timeframes to spot those efficient entries into the bigger picture move. This came on Wednesday with a solid +1.17% trade on offer which duly obliged hitting target within minutes if you had taken either of the 2 setup’s which occurred just after 7am London time.
3. EURUSD (5Min Chart) – Pivot Trade Short 22.05.2014 – This pair is still reeling after last week’s comments from Draghi and co however the move on the daily was pretty overcooked therefore traders were looking to get in and out quickly for their pips. The market provided such an opportunity on Thursday with a pivot setup in the early European session cementing a +0.9% profit.
4. GBPCHF (5Min Chart) – Pivot Trade Long 19.05.2014 – In a similar fashion to the EURGBP trade above, we were pairing strength (Pound) against weakness (Swiss Franc) to allow for some strong, efficient moves to the long side. The daily chart was screaming higher and thus not allowing forex traders an efficient entry so in order to do so, the lower timeframes were used. Again, the pivot strategy proved popular in this case, providing a healthy retracement into the pivot point on Monday morning. The trade took quite some time to hit target but eventually did so the next day, achieving a very healthy +1.76%.
5. S&P500 (Daily Chart) – Power Pivot Trade Long 19.05.2014 – Last week saw a move lower on this index, back to the daily 50ma. This is where price also highlighted some hidden stochastic divergence hinting another leg higher was possible. The inside bar from Friday also gave another firm clue that buyers were interested again. Taking a break of Friday’s high, with a stop under its low, allowed a small enough risk to enable a profit target of +1% around the major resistance of 1892 area. This was hit on Thursday.