Pivot Points in Forex
For a guiding light in the overall direction of where the market is headed pivot points can offer a good deal of insight.
By looking at daily pivot points someone can gauge whether or not price action is being pulled in the direction of the current trend or not.
If price action is above the Pivot Point it will be pulled down, and if it is below it price action should go up.
This is definitely not a hard fast rule, but pivot points do provide some insight into which direction the market is being pulled into.
This gauge of elasticity provides a good deal of insight for traders who are looking to figure out which way the market might swing, and while it is not one hundred percent accurate it provides a guiding light.
This is one tool that needs to be at the ready for any serious trader, especially when price action becomes so volatile that it reaches for the Support and Resistance levels established via pivots.
When price action reaches a daily pivot point determined level of support or resistance it is time to consider a trade.
If this level of support or resistance corresponds with one that has already been established it is definitely time to think about your next course of action.
The most successful trades are those that are made by layering indicators onto one another, and often they are done before the indicator comes full circle.
Some things will point in a slightly more than vague way towards a change in movement, and this is the time to move.
By waiting until all the indicators come together someone can miss out on an opportunity that otherwise would have been possible.
There are too many different strategies out there that rely on waiting until the last moment, and this can cause many errors.
Operator error with regard to the trading interface or a number of other issues can often arise that will cause a trader to lose their opportunity or maybe even lose money.
Trading in a demo account is very important for this reason, and should be considered the primary means of testing out strategies you are considering.
Once a trader is comfortable with not only the results they are getting, but also with their reflexive knowledge of the subject at hand they can begin to create some amazing opportunities for them selves.
By looking at daily pivot points someone can gauge whether or not price action is being pulled in the direction of the current trend or not.
If price action is above the Pivot Point it will be pulled down, and if it is below it price action should go up.
This is definitely not a hard fast rule, but pivot points do provide some insight into which direction the market is being pulled into.
This gauge of elasticity provides a good deal of insight for traders who are looking to figure out which way the market might swing, and while it is not one hundred percent accurate it provides a guiding light.
This is one tool that needs to be at the ready for any serious trader, especially when price action becomes so volatile that it reaches for the Support and Resistance levels established via pivots.
When price action reaches a daily pivot point determined level of support or resistance it is time to consider a trade.
If this level of support or resistance corresponds with one that has already been established it is definitely time to think about your next course of action.
The most successful trades are those that are made by layering indicators onto one another, and often they are done before the indicator comes full circle.
Some things will point in a slightly more than vague way towards a change in movement, and this is the time to move.
By waiting until all the indicators come together someone can miss out on an opportunity that otherwise would have been possible.
There are too many different strategies out there that rely on waiting until the last moment, and this can cause many errors.
Operator error with regard to the trading interface or a number of other issues can often arise that will cause a trader to lose their opportunity or maybe even lose money.
Trading in a demo account is very important for this reason, and should be considered the primary means of testing out strategies you are considering.
Once a trader is comfortable with not only the results they are getting, but also with their reflexive knowledge of the subject at hand they can begin to create some amazing opportunities for them selves.
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