So I went through school and read the section regarding how to use pivot points SEVERAL times and I’m still confused about how to use pivot points.
Suppose I start a pivot point (using FXCM Market Scope), do I base it off of day, 60 min, 30 min, 15 min, etc.?
How do you know where the price will go? Suppose it’s going up to R1, how is this a reference to go long (buy)? I’m generally having a hard time understanding how to rely that the movement of the candle stick toward a R or S of the PP to initiate a move in the market.
So I went into Market Scope and brought up the USD/JPY info. I started a day PP for 5/21/09 and could see how the market dropped below the first S1.
Next at 30 min time intervals I started a new PP for time 20:00 (to show the 20:00-20:30 movement). I see the candle stick move up and the whole PP lines move up as the candle stick moves up from ~93.900 to over ~94.000.
I’m having a hard time making sense of how to use the PP. Anyone have some helpful insight?