Pivot Points
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Thread: Pivot Points

  1. #1
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    Pivot Points

    Pivot points are one of the most important methods to study price movements in the technical analysis and we can compare them with the moving averages somewhat, and these points are characterized by the following:
    [1] Give a clear indication of the direction of the current price.
    [2] The ability to identify entry points, targets or stop loss based on these points.
    [3] It is directly and psychologically linked to the market as it is average for traders' view for a fixed period of time (often from one day to one week).
    [4] Ease of use and speed of application.
    [5] correspond to most of the current market data and levels of support and resistance.
    [6] Unlike technical indicators of all types that rely on moving averages mainly, which makes them late and worthless in the decision to enter or determine the entry points are true often, the pivots have the advantage of matching with the price in a live manner and this occurs often in normal trading periods that does not contain Any jumps or large price movements that affect the entry decisions of any technical analyst.

    To understand this more, we begin to know how to calculate the pivots as follows:

    The equation:

    (The previous day's high + the closing price for the previous day + the lowest price for the previous day) 3 3 = pivots

    Example:
    Top price = 1.4400, closing = 1.4360, lowest price = 1.4300

    The equation is as follows:

    (1.4400 + 1.4360 + 1.4300) 3 3 = 1.4350, that is, the pivot point is 1.4350.

    Then we take the current price, for example, 1.4376, we conclude that the current price is higher than the pivots, which means that the current trend for the short term is bullish and that the pivots are a strong point of support and prefer to buy theoretically. . This means that the pivot points must be determined by other technical confirmation, including support lines, resistance and others, and this applies to the levels of support and resistance of the peyote.


    Support and resistance of pivot points

    These levels are very important especially since their strength level is only confirmed or confirmed by another technical study in their approval as support and resistance levels along the ascending or descending trend lines, Fibonacci levels, or historical levels.

    You can make sure you follow it for a while and see how it relates to the market amazingly.

    How to calculate resistance and support levels:
    The calculation of resistance and support levels is usually calculated up to three resistors and successive support as follows:

    Resistance 1 = (2 x Pivot) - Lowest price
    Support 1 = (2 x Pivot) - the highest price

    Resistance 2 = Peavot + (Resistance 1 - Support 1)
    Support 2 = Pivot - (1-support 1)

    Resistance 3 = Highest Price + (2 x (Pebut - Lowest Price))
    Support 3 = lowest price - (2 x (highest price - pivots))

  2. #2
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    Through knowing the support and resistance level in the forex market we can just come to know the exact pivot points. Pivot points are the actual places where we can just open so many profitable trades. But if we have no clear idea about the market support and resistance level then we can never measure the pivot points.
    Those who runs only they win the race of life.

  3. #3
    The use of pivot points is very indispensable in day trading as this helps you to take better decision on entry and exit of a position but there are indicators that can help do the charting of this pivot points on your trading platform so that you will not need to do any mathematical calculation to determine those level by yourself.If you look at the chart below , you will notice that the pivot levels feature and it is pivot points indicator that did the charting which will be automatically updated as new trading day comes in by making use of the previous day high , low, opening and closing price.

    pivot.jpg
    Those red lines stand for resistance 1, resistance 2 and resistance 3 respectively and also the same for the support, there is need for you to learn how this can be employed to improve your trading as a day trader

  4. #4
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    In the study of pivot points we just find a way of making true trades in the forex market. If we thoroughly study the forex market then we can also come to know the pivots point which are actually entries point of our trading. If one trader is not sure about these points then one can never get high profit in the forex market. And when we have knowledge about these points then we can make the big earning. In the study of technical analyses we can get to know these points and can trade through these points.

  5. #5
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    Quote Originally Posted by adeelyaz View Post
    In the study of pivot points we just find a way of making true trades in the forex market. If we thoroughly study the forex market then we can also come to know the pivots point which are actually entries point of our trading. If one trader is not sure about these points then one can never get high profit in the forex market. And when we have knowledge about these points then we can make the big earning. In the study of technical analyses we can get to know these points and can trade through these points.
    it seems you're saying that pivots could give us exact levels or areas when we trade and enter at that moment, our trades will be guaranteed in profits. it's because you're saying that pivot points help us to make true trades in forex market. be real sir, there's no holy grail system in this business which can guarantee us such true trades. risky business like forex trading would always give us losses sometime, even if we're working with pivots. in fact that's not the only consideration for us to trade reversals though.

  6. #6
    Sequel to my previous post on this thread, the pivot level indicator is great tool for day trading as you can see on the chart below . The price of GBP/USD is very close to the pivot resistance 1 and as long as that area holds, the price is most likely to come south at least for now .

    CapA.jpg

    In case the resistance 1 is broken upward , the next point of call will be the resistance 2 but the market does not appear to break that level now and an aggressive trader may look for sell signal around that area with good risk and money management . Just like I said before , there is no need belaboring yourself to calculate these pivot levels because there is an indicator designed for that purpose . All you need is to search for it online, attach it to your chart and apply it on any currency pairs of your choice

  7. #7
    well i once used pivot points to trade but i have to say that there is no substitute to plotting our levels of support and resistance manually where as pivot points are auto calculated so this does not allow for a trader to adjust the levels as new highs or lows are created by the market and this why i love plotting my levels manually

  8. #8
    In forex trading , there are daily , weekly and monthly pivot levels and the most common one is daily pivot which I consider an indispensable tools for day and intra day trading in forex but I disagree with the point mentioned in this thread that it can be compared with moving averages. Moving averages can be used to determine market trend , you cannot use this indicator to determine market trend but when it comes to determining the entry and exit points of a trade , pivot levels are always found to be useful and relevant . I read through the ways those pivot levels are being calculated and I can tell you that this may no longer be necessary since there is a pivot indicator that can be attached to the chart which will easily get the job done neatly on the trading platform . In my previous posts on this thread, I attached this indicator and you can search for it if you need the indicator.

  9. #9
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    Pivot point is the mist important part of this trading business because its the middle point of market every day movement. if we are use this point then we can earn the high profit from this market because normally we are know that when price is below that point then trend is bearish and when price is above from this point then trend is bullish. This is very easy for us to trade and earn profit from this market with this way of trading.

  10. #10
    Quote Originally Posted by biru View Post
    Pivot point is the mist important part of this trading business because its the middle point of market every day movement. if we are use this point then we can earn the high profit from this market because normally we are know that when price is below that point then trend is bearish and when price is above from this point then trend is bullish. This is very easy for us to trade and earn profit from this market with this way of trading.
    I used the same application of pivot points from my old indicators with my old trading strategies. I admit it was a good trading because I could find market levels of support resistance in minor or major areas. It is also good to trade as day trading to get 50 pips profit per each trade in minimum amount. Overall this is good strategy but for me I have a better one.

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