This strategy is good for beginners as it is fairly easy to learn and understand and generally has a pretty high success rate. You can use this on the 1 minute or 5 minute chart intraday. This strategy is using the Pivot Points study which is essentially charting intraday Support/Resistance levels on the chart, it is also charting MFI to give you an indication of the stocks overbought and oversold levels.
How It Works
I will provide you an example of how this works via TSLA chart from today. So we are going to use the 5 minute chart for the day and we are going to use the Pivot Points study in conjuction with MFI. Let's dive into the chart to get a better understanding of how this looks.
Line Color Key
Purple Line = Pivot Point
Green Line = Intraday Support
Red Line = Intraday Resistance
So above you can see the different lines that the Pivot Points study overlays on the chart. The blue line is the "Pivot Point line which is a good basic indicator of which direction the stock will be headed. Generally a break above the purple line is bullish and a break below the blue line is bearish. You can play that as a momentum strategy if you would like but the safer play is syncing up the Pivot Points with MFI.
So generally what I am looking for is if the stock is oversold on MFI(Under 25) and the stock is near or at a Pivot or Support Point or the stock is overbought on MFI(Over 75) and the stock is near or at a Resistance point. As you can see from the chart above this played out in both directions today and would have worked well to receive good profits! I will include the study below for you to load and try out on your own!
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Pivot Point Strategy
If you check out this strategy and it works well for you let me know in the comments or if you added your own spin to it, let me know and I will try it out!