Pivot points
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Thread: Pivot points

  1. #1
    Join Date
    Mar 2006
    Location
    San Diego, CA
    Posts
    6

    Default Pivot points

    Greetings

    I just started learning how to trade forex and I've noticed how well the currency pairs react to pivot point levels. I was just wondering if anybody had any tips on how best to trade these levels?

  2. #2
    Join Date
    Mar 2006
    Location
    Washington
    Posts
    4
    Pivot points act like mini support and resistance lines similar to fib lines. The longer the time frame the tougher those pivots are. Try to think of them as "make or break" lines where if the price breaks through it, it will probably move to the next pivot point. If it can't break it, watch for a bounce towards the previous pivot point.

    In my experience, it seems that pivots aren't really that significant in lower time frame charts such as 5, 10, or 15 minute charts. I really like them on 1hr, 4hr, and daily charts though.

    Good luck with your trading!

  3. #3
    The pivots points can be so useful for forex market for range-bound traders to identify points of entry and for trend traders and breakout traders to spot the key levels that need to be broken for a move to qualify as a breakout.
    They can be combined with other indicators to develop other trading strategies. One of them is you can use the pivot level as a base, but the accuracy of using pivot lines increases when the candlestick formations can also be identified.

  4. #4
    Join Date
    Nov 2007
    Location
    BC, Canada
    Posts
    3,191
    Quote Originally Posted by IneedPips View Post
    Pivot points act like mini support and resistance lines similar to fib lines. The longer the time frame the tougher those pivots are. Try to think of them as "make or break" lines where if the price breaks through it, it will probably move to the next pivot point. If it can't break it, watch for a bounce towards the previous pivot point.

    In my experience, it seems that pivots aren't really that significant in lower time frame charts such as 5, 10, or 15 minute charts. I really like them on 1hr, 4hr, and daily charts though.

    Good luck with your trading!
    I suppose one can calculate pivots for different timeframes, but I only plot the "daily" pivots, so it shouldn't matter which timeframe I'm looking at. If x.xx price is plotted as a pivot line on the 4hr, it will be the same on a 5 min and subject to the same make or break scenario

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