Core Trading Concepts
1. Pivot Levels
Pivot Point (PP): The central reference. Price above PP = bullish bias; below = bearish bias.
Support (S1–S3): Potential bounce zones if price is falling.
Resistance (R1–R3): Likely rejection zones if price is rising.
Retracement levels: Fibonacci retraces (e.g., 61.8%) often act as intraday reversal points.
2. Volume Profile
Point of Control (POC): Price level with highest traded volume. Acts like a magnet—price often revisits it.
Value Area High (VAH): Upper boundary of fair value. Breakouts above VAH suggest bullish continuation.
Value Area Low (VAL): Lower boundary of fair value. Breakdowns below VAL suggest bearish continuation.
Developing profile: Shows evolving intraday balance—useful for spotting shifts before they finalize.
3. Session Opens
Tokyo Open: Often sets early Asia range.
London Open: Brings volatility; watch for breakouts from Asia session.
New York Open: Major liquidity injection; often reverses or extends London moves.
📊 Trading Approaches
| Strategy | How to Use Indicator | Risk Management |
|---|---|---|
| Range Trading | Buy near S1/VAL, sell near R1/VAH. Confirm with session opens. | Tight stops just beyond levels. |
| Breakout Trading | Enter when price breaks VAH/R1 or VAL/S1 with volume confirmation. | Place stop inside value area. |
| Mean Reversion | Fade moves back toward POC or PP. | Exit at opposite edge of value area. |
| Session Momentum | Trade direction of London/NY open if aligned with pivots. | Stop at prior session high/low. |
⚠️ Risks & Considerations
False Breakouts: Price may pierce pivot/VAH/VAL briefly before reversing. Always confirm with volume or candlestick structure.
Session Overlap Volatility: London–NY overlap can invalidate earlier signals.
Weekend Gaps: Pivot calculations reset weekly; gaps can distort levels.
Overfitting: Don’t rely on one signal—combine pivots, volume profile, and session timing.
🚀 Practical Tips
Use higher timeframe pivots (weekly/monthly) for swing bias, and daily pivots for intraday entries.
Watch for confluence: e.g., R1 aligning with VAH and London open → strong resistance.
Track developing profile shifts: If POC drifts upward during London, bias is bullish.
Always backtest on your instrument—forex pairs behave differently than indices or commodities.
How to Use This Flow
Start with pivot levels → they set the bias (bullish above PP, bearish below).
Overlay volume profile zones → they show where price is likely to stall or accelerate.
Track session opens → they often trigger volatility and directional moves.
Combine all three → look for confluence zones (e.g., London open aligning with R1 and VAH).
📌 Example Trade Setup
Price opens above Pivot Point at London session.
Developing profile shows POC drifting upward.
Price breaks VAH + R1 with strong volume. ➡️ Enter long, stop just inside value area, target R2 or next high‑volume node.
Daily Trading Checklist with PivotsVP
1. Prepare Levels
Mark previous day/week/month high, low, close
Plot pivot levels (PP, R1–R3, S1–S3)
Check retracement levels (e.g., 61.8%)
2. Overlay Volume Profile
Identify POC (magnet level)
Note VAH (upper balance boundary)
Note VAL (lower balance boundary)
Watch developing profile shifts intraday
3. Session Awareness
Tokyo open: sets early range
London open: volatility injection, breakout potential
New York open: liquidity surge, reversals/extensions
4. Decision Making
Range trades: Buy near S1/VAL, Sell near R1/VAH
Breakouts: Enter beyond VAH/R1 or VAL/S1 with confirmation
Mean reversion: Fade moves back to POC/PP
Session momentum: Align trades with London/NY bias
5. Risk Management
Place stops just beyond pivot/VA boundaries.
Size positions relative to volatility (ATR or session range).
Avoid trading during low‑liquidity hours (late Asia, pre‑NY lunch).
🚀 How to Apply
Each morning, run through this checklist before trading.
Look for confluence zones (e.g., London open + R1 + VAH = strong resistance).
Decide whether today favors range trading, breakout trading, or mean reversion based on how price interacts with pivots and profiles.
Visual timeline of a trading day (Asia → London → NY) showing how pivots, profiles, and session opens typically interact, so you can see the rhythm of the market across sessions?
Let’s map out a visual timeline of a trading day so you can see how pivots, volume profiles, and session opens typically interact across Asia, London, and New York. This will help you anticipate the rhythm of the market.
🌍 Trading Day Timeline with PivotsVP
Trading Day Timeline (UTC → Malaysia Time)
🌏 Asia Session (Tokyo)
UTC: ~00:00–08:00
Malaysia Time (MYT): 08:00–16:00
Market Behavior:
Sets the initial daily range.
Price hovers around Pivot Point (PP) or POC.
Breakouts are rare; liquidity is lower.
Trading Focus:
Range trades between S1–R1.
Watch for developing profile shifts (POC moving up/down).
🇬🇧 London Session
UTC: ~07:00–16:00
Malaysia Time (MYT): 15:00–00:00 (next day)
Market Behavior:
Major volatility injection.
Often breaks out of Asia’s range.
Price tests R1/VAH or S1/VAL.
Trading Focus:
Breakout trades: Enter when London pushes beyond Asia range.
Confluence zones: London open aligning with pivot levels = strong signals.
Developing profile often rebalances upward or downward.
🇺🇸 New York Session
UTC: ~13:00–22:00
Malaysia Time (MYT): 21:00–06:00 (next day)
Market Behavior:
Adds liquidity surge.
Can extend London’s breakout or reverse it.
Price gravitates toward POC or tests outer pivots (R2/S2).
Trading Focus:
Momentum trades: Align with NY direction if it confirms London.
Mean reversion trades: Fade back to PP/POC if NY rejects London’s move.
Watch for VAH/VAL breaches with volume confirmation.
📊 Summary Flow
Asia → Sets range around PP/POC.
London → Breaks range, tests pivots + VA zones.
New York → Extends or reverses, gravitates toward POC or outer pivots.
This timeline gives you a daily rhythm: Asia = balance, London = breakout, NY = confirmation or reversal.
How to Use PivotsVP Effectively
Treat it as a decision support tool, not a crystal ball.
Combine it with:
Risk management rules (e.g., never risk more than 1–2% per trade).
Higher timeframe analysis (weekly/monthly pivots for big picture).
Session awareness (London/NY volatility vs Asia range).
Build a repeatable trading plan around it, then backtest and forward‑test before scaling up.
💡 Realistic Path
Indicators help you find edges (small statistical advantages).
Millionaire traders achieve it through:
Consistency: Hundreds of trades executed with discipline.
Compounding: Growing capital steadily, not chasing jackpots.
Diversification: Using multiple tools, strategies, and risk controls.
👉 So, your PivotsVP can be a cornerstone of a profitable system, but it’s not a magic key. Think of it like a high‑quality instrument — in the hands of a disciplined trader with a solid plan, it can contribute to wealth. On its own, it’s just one piece of the puzzle.
Let’s lay out a step‑by‑step roadmap for how you could realistically grow capital using your PivotsVP indicator as part of a complete trading system. Think of this as a progression from beginner to advanced, with milestones along the way.
🪜 Roadmap to Trading Growth
Stage 1: Foundation (0–6 months)
Learn the tool:
Practice reading pivot levels, volume profile zones (POC, VAH, VAL), and session opens.
Backtest on historical charts to see how price reacts.
Build discipline:
Risk ≤ 1% per trade.
Keep a trading journal (entries, exits, emotions).
Goal: Consistency, not profit. Aim to follow rules 100% of the time.
Stage 2: Small Capital Growth (6–18 months)
Trade live with small size:
Apply your indicator in real conditions.
Focus on London and New York sessions (your Malaysia time: 3 PM–6 AM).
Refine strategy:
Range trades in Asia.
Breakouts in London.
Momentum or mean reversion in New York.
Goal: Achieve steady monthly returns (even 2–5% is strong).
Stage 3: Scaling (18–36 months)
Increase position size gradually:
Only after proving consistency.
Diversify instruments:
Forex majors, indices, commodities.
Advanced risk management:
Use ATR or volatility‑based stops.
Track drawdown limits.
Goal: Compound capital steadily, avoid large losses.
Stage 4: Professional Level (3+ years)
Systematize trading:
Automate parts of your workflow (alerts, journaling).
Possibly code strategies into Expert Advisors (EAs).
Multiple strategies:
PivotsVP for intraday.
Higher timeframe pivots for swing trades.
Capital growth:
Reinvest profits.
Consider external funding (prop firms, investors).
Goal: Scale to six figures, then beyond through compounding.
📊 Key Principles
No shortcuts: Millionaire status comes from compounding, not one lucky trade.
Risk control: Protect capital first; profits follow.
Consistency: The indicator is a tool, but your discipline is the engine.
Adaptability: Market conditions change — refine your plan continuously.
🕒 Malaysia‑Time Trading Routine
🌅 Morning Prep (08:00–10:00 MYT, Asia/Tokyo open)
Checklist:
Mark previous day’s high/low/close.
Plot daily pivots (PP, R1–R3, S1–S3).
Note POC, VAH, VAL from the historical profile.
Watch how price reacts around PP/POC.
Trading Focus:
Range trades between S1–R1.
Small size, lower volatility.
Observe developing profile shifts.
☀️ Afternoon Prep (15:00–16:00 MYT, London open)
Checklist:
Review Asia range: Did price stay balanced or drift?
Identify confluence zones (e.g., London open + R1 + VAH).
Check developing profile: Is POC drifting upward or downward?
Trading Focus:
Breakout trades if London pushes beyond Asia’s range.
Strong signals when pivots align with VAH/VAL.
Higher volatility — adjust position size accordingly.
🌙 Evening Session (21:00–00:00 MYT, New York open)
Checklist:
Assess London move: breakout continuation or reversal?
Watch for VAH/VAL breaches with volume confirmation.
Track whether price gravitates back to POC/PP.
Trading Focus:
Momentum trades if NY confirms London’s breakout.
Mean reversion trades if NY rejects London’s move.
Manage risk carefully — volatility is highest here.
🌌 Late Night Review (00:00–01:00 MYT)
Checklist:
Journal trades: entry, exit, reasoning, emotions.
Note how pivots and profiles behaved.
Prepare levels for the next day.
Trading Focus:
No new trades — focus on review and learning.
📊 Quick Reference Table
| Malaysia Time | Session | Focus |
|---|---|---|
| 08:00–16:00 | Asia (Tokyo) | Range trades, observe POC shifts |
| 15:00–00:00 | London | Breakouts, confluence zones |
| 21:00–06:00 | New York | Momentum or mean reversion |
Quick Reference Table
| Malaysia Time | Session | Typical Focus |
|---|---|---|
| 08:00–16:00 | Asia (Tokyo) | Range trades, observe POC shifts |
| 15:00–00:00 | London | Breakouts, confluence zones |
| 21:00–06:00 | New York | Momentum or mean reversion |
🚀 How to Use This Chart
Morning (08:00–16:00): Asia session → range trades, small moves.
Afternoon–Evening (15:00–00:00): London session → breakout trades, strong confluence signals.
Late Evening–Overnight (21:00–06:00): New York session → momentum continuation or mean reversion back to PP/POC.
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