This should be the article many have been waiting for. A more detail explanation of Pipholic’s forex signals generating system. In case you are new here, please note that this is a subsequence of trading the gbp-usd daily pivot article. Both articles are meant to explain the way I generate Pipholic Daily Free Forex Signals.

In the previous article I explained many aspects to be considered as regards defining the daily pivot point. Now, after we get the pivot point, the next step is to determine the trade direction; whether it is to go long (buy) or short (sell). Also, to determine at what price we should place the order; whether it is at the (+/-) 20 pips or (+/-) 40 pips distance from the pivot point.

Below are steps I do for those purpose:

  1. I open the 15 minute chart of GBP/USD
  2. I divide the chart into 6 areas divided by: pivot lines and lines drawn at 20 and 40 pips above/below the pivot lines. Please see the picture belowgbp-usd-chart
  3. At 22.00 GMT, I watch the last three candles; the current candle and previous two candles.
  4. If at 22.00 GMT, the last three candles are at the A area, I will buy at +40 pips (40 pips above pivot)
  5. If at 22.00 GMT, the last three candles are at the B area, I will buy at +20 pips (20 pips above pivot)
  6. If at 22.00 GMT, the last three candles are at the C area, I will sell at -20 pips (20 pips below pivot)
  7. If at 22.00 GMT, the last three candles are at the D area, I will sell at -20 pips (20 pips below pivot)
  8. If at 22.00 GMT, the last three candles are at the E area, I will sell at -20 pips (20 pips below pivot)
  9. If at 22.00 GMT, the last three candles are at the F area, I will sell at -40 pips (20 pips below pivot)

Since I take the last three candles to be observed, instead of only the current candle (22.00 GMT candle), there could be many variations of the candles position.

It is frequent that I can’t find all those three candles in a distinct position (e.g, all at the A area or all at the B area). In this case, I usually wait and watch the next 2 or 3 candles. This is indeed the discretionary part of this trading systems. I’m gonna try to give some case studies later for a better explanation.

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