Moving Average Pivot Point Breakout System

The moving average pivot point breakout system takes the very common pivot point approach and gives it a twist. We took the pivot point and averaged it over three bars to get the direction of the market. If the previous session’s pivot point was lower than today’s session pivot, then we are looking to go long. If the previous session’s pivot point was lower than today’s session pivot, then we would look to go short.

[hidepost=1]We also took the FXI_LP indicator and used it to determine if the market was flat. If it was flat then we did not enter any trades.

A long entry occurred if the mid-point between the pivot point and R1 was broken. The stop loss was placed at the pivot point and a take profit was placed at R1. For a short entry, the mid-point between the pivot point and S1 had to be broken. A stop loss was placed at the pivot point and a take profit was set at S1.

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