- Strategy
- Buys a bullish rejection candle at the daily S1 pivot and sells a bearish rejection at R1, targeting the central pivot in both cases.
- Risk model
- 1% of balance per trade (configurable), stop-loss beyond the rejection wick on every order, one position per symbol and magic number
What it does
Pivot Point Bounce EA uses the classic floor pivots calculated from the previous day. When price tests the first support (S1) or first resistance (R1) and leaves a clear rejection wick, the EA trades back toward the central pivot. The target is a real level, not an arbitrary multiple, and trades are skipped when that level is too close to justify the risk.
How it works
Each day the EA calculates, from the previous daily candle's high (H), low (L) and close (C):
- Pivot P = (H + L + C) ÷ 3
- R1 = 2 × P − L
- S1 = 2 × P − H
On each new intraday bar it checks the last closed candle:
- Buy setup: the low reaches S1 (within 0.1 ATR), the candle closes above S1 but below P, and the lower wick is at least half the candle's range.
- The stop goes below the candle low minus 0.2 ATR. The target is P.
- If the distance from the ask to P is less than 1 R (the stop distance), the trade is skipped.
- Only the first qualifying candle at each level per day is considered.
Sells mirror these rules at R1. Example (illustrative): if yesterday's H = 1.0900, L = 1.0800 and C = 1.0850, then P = 1.0850, R1 = 1.0900 and S1 = 1.0800.
How to use it
The idea suits range-bound days on M15 to H1, often during quieter sessions. Pivots are widely watched, which is part of why they can matter, but on strong trend days price can run through S1 or R1 without pausing. The drawn levels help you check the EA's calculations against your chart.
Settings
| Input | Default | What it changes |
|---|---|---|
| Touch tolerance (x ATR) | 0.1 | Closeness to the level |
| Minimum wick ratio | 0.5 | Strength of the rejection |
| Stop buffer (x ATR) | 0.2 | Room beyond the wick |
| Minimum reward (R) | 1.0 | Minimum distance to the pivot target |
| Max stop (x ATR) | 2.5 | Skips very large candles |
| Draw levels | true | Shows P, S1, R1 |
| Risk % / Fixed lots | 1.0 / 0 | Position sizing |
| Max spread / hours | 30 points / 7 to 20 | Entry filters |
| Break-even / Trailing | on at 1 R / off | Trade management |
Limitations
Daily pivots depend on when your broker's day starts; a broker on a different server time produces different levels. The strategy trades against short-term moves, so trending days can cause losses. Because the target is fixed at P, the reward-to-risk varies trade by trade. Sunday candles on some brokers distort Monday's pivots.
Before you run it live
Compare the EA's levels with a pivot indicator on your broker's charts, then test on a demo account and in the Strategy Tester. Check spread at your trading hours. Read our lesson on support and resistance, and keep risk small. Trading carries a substantial risk of loss.