Here is my first Forex trade of April, 2009.
The daily EUR/USD R2 pivot level (maroon line, hard to see on leftmost chart of my layout) was rejected, which also coincided with a 2 touch 60 minute trendline rejection and some MACD divergences on some of the timeframes with price. I was looking for the R1 daily pivot level (teal line on leftmost chart) or better to cover.
Short EUR/USD 10 microlots, scaled out 5 and 5 near R1 pivot for average gain of 22 pips:
First April, 2009 Trade Screenshot
As a side note, notice how in my trade screenshot the USD/JPY chart (rightmost) how the R1 to R2 pivot play in reverse also worked (e.g. R1 teal pivot was broken, got retracement found support, rally to R2 (light maroon line).
As a futures trader I am used to using pivot points as S/R. The pivot points are also well-respected in Forex. Following is a good site which has the daily and other pivot levels (put the daily pivots on your minute charts works well as S/R):
Pivot Points Site
It is sort of a pain to manually draw in the pivot lines so I made an indicator for FXCM Micro Trading Station II which will draw in the R1,R2,R3,PP,S1,S2,S3 levels automatically based on entering the previous day's high, low and close. I will post the indicator later on some time with instructions for anyone using FXCM Micro Trading Station II.
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