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Posted on Oct 08, 2018 at 02:47 PM
Do you struggle a lot trying to get the best entry and exit point for your trades? Not anymore! You are about to learn the best way to use pivot points, support and resistance to enter and exit the Forex market so you can close more profitable trades.
A general flaw of many traders is the habit of seeking “certainty” via indicators. It’s not uncommon to see charts with five to seven indicators overlaid on them.
However, traders that seek certainty are not always thorough enough to dig deep into the indicator to understand how it’s built.
In this article, we will look into a very useful indicator that can generate significant reference points which are useful for pinpointing Entry Levels, Stop Loss Levels and Profit Targets.
PIVOT POINT TRADING: UNIVERSAL, DEPENDABLE, RELIABLE
The Pivot Point is the level at which the market direction changes for the day. It’s an indicator that is essentially based on price action which helps a trader find key price levels in the market.
Every day, the market for each financial asset has an OPEN, HIGH, LOW and a CLOSE. Using some simple arithmetic with these data, a series of points are derived: PIVOT, SUPPORT & RESISTANCE levels.
Pivot Points are reactive because many floor traders follow it, making them dependable and reliable.
Rather than lagging, they are PREDICTIVE: You use the data from the previous day to calculate potential turning points for the present day.
CALCULATING PIVOT POINTS
To get your Pivot Point Calculations, kindly visit www.actionforex.com > Markets > Pivot Points.
USING PIVOT POINTS: APPLICATION & TRADE BIAS
TRADE ENTRIES & EXITS WITH PIVOT POINTS
#1 BREAKOUT WITH INDICATORS
#2: THE PULLBACK TRADE
HERE IS THE TRADE RESULT ON THIS STRATEGY
Buddy! You’ve got a little assignment! Go on and analyse the trade below using the strategy you just learnt! Be sure to leave your analysis/comment in the comment section below.
The first 10 traders with accurate analysis gets a Free E-book on Pivot points. Leggo!