Pivot Point Shift with EMA Filter

Pivot point shift with Ema filter is an intraday forex trading system that is based on the support and resistance areas and moving averages. Support and resistance is the key concept of technical analysis and No trading system is complete without the use of support and resistance.

Support and resistance can be used for trend determination and also for taking entry exits. In This trading system pivot, a shift indicator is used which is just another form of support and resistance. Let’s try to understand the working of this trading system.

Pivot Point Shift with EMA Filter Overview

Support is the area when the downtrend is expected to pause due to lack of selling or more demand than the supply. A resistance level is the opposite of a support level. Resistance is the area when the uptrend is expected to pause due to lack of buying or more supply than the demand.

Pivot Point Shift with EMA Filter Overview

However, once the price has breached support and resistance levels then, it is likely to continue until meeting another Support level below the previous support or resistance level above the previous resistance.

When the price is breaking out of resistance and approaching the next resistance level, it means the price is in an uptrend. When price gives a breakdown of the support level and approaches the next support level it means the price is in a downtrend.

Pivot Point Shift with EMA Filter Explanation

Moving average of 20 is used along with the pivot levels. If the price is above the moving average then traders should look for long trades and if the price is below the moving average then traders should look for short trades.

Pivot Point Shift with EMA Filter Explanation

Moving average provides a good filter for this trading system and it is also used for the trail stop loss method. This trading system should be used on a 15-minute time frame chart for intraday trading.

Also Read: Rsi Demarker Super Position

Pivot Point Shift: Buy Conditions

Pivot Point Shift Buy Signals
  • Price should move above the pivot level.
  • Price should trade above the 20EMA
  • Breakout of the resistance level is the entry point
  • Traders can hold the trade till the time price is above 20 EMA.

Pivot Point Shift: Sell conditions

Pivot Point Shift Sell Signals
  • Price should move below the pivot level.
  • Price should trade below the 20EMA.
  • Breakout of the support level is the entry point.
  • Traders can hold the trade till the time price is below 20 EMA.

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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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