Pivot point forex trading strategy
Professional forex traders and market makers use pivot points to identify potential support and resistance levels. In many ways, forex pivot points are very similar to Fibonacci levels.
Because so many people are looking at those levels, they almost become self-fulfilling. The major difference between the two is that with Fibonacci, there is still some subjectivity involved in picking Swing Highs and Swing Lows.
Pivot Strategies: A Handy Tool For Forex Traders
With pivot points, forex traders typically use the same method for calculating them. Pivot points are especially useful to short-term traders who are looking to take advantage of small price movements.
Just like normal support and resistance levels, forex traders can choose to trade the bounce or the break of these levels. Range-bound traders use pivot points to identify reversal points.
They see pivot points as areas where they can place their buy or sell orders. Breakout forex traders use pivot points to recognize key levels that need to be broken for a move to be classified as a real deal breakout.
As you can see here, horizontal support and resistance levels are placed on your chart. How convenient is that?! In the following lessons, you will learn how to calculate forex pivot points, the different types of pivot points and most importantly, how you can add pivot points to your forex trading toolbox!
Forex Pivot Points Book. Series of Free Forex ebooks
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Ichimoku + Pivot Point Trading Strategy
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