Take a Look at This Price Action Trading Strategy

Using K’s Pivot Points and the RSI to Trade the Markets

A trading strategy is composed of a directional component, a filter, and a risk management system. As simple as it may seem, developing a good trading strategy is extremely hard.

This article presents a new trading strategy that uses price action, an indicator, and a risk management system based on volatility.

A Refresher on K’s Pivot Points

K’s Pivot Points try to enhance the classic pivot points by incorporating multiple elements and by applying a re-integration strategy to validate two events:

• Found_Support: This event represents a basing market that is bound to recover or at least shape a bounce.
• Found_Resistance: This event represents a toppish market that is bound to consolidate or at least shape a pause.

K’s Pivot Points are calculated following these steps:

1. Calculate the highest of highs for the previous 24 periods (preferably hours).
2. Calculate the lowest of lows for the previous 24 periods (preferably hours).
3. Calculate a 24-period (preferably hours) moving average of the close price.