A classic intraday breakout strategy that uses pivot points as critical levels of support/resistance to enter and exit the market.
If price begins the day between pivot (P) and support level 1 (S1) the algorithm's bias is long.
A buy stop order is opened if price breaks through P. Stop loss 5 pips below S1. Target 5 pips below R1.
Assuming S1 and R1 levels hold the 5 pip buffers protect the trader from being stopped out easily and not hitting target respectively.
The exact opposite is also true. Price starting above P and below R1 leads to a short bias for the trading day.