How to use pivot point

Beginner Questions
1

I’m not sure how to draw pivot point in the first place.

Which bar do u use?

Should I click on the bar and drag to the right which I mean the bar right next to the bar currently moving up and down?

Hope u understand my question…It’s on 8th grade.

2

Just draw 7 lines across your chart for
R3
R2
R1
PP
S1
S2
S3

I assume your talking about daily floor PP.

Free PP calculator is available @babypips
Pivot Point Calculator: Free Online Calculations of Forex Pivot Points

3

Are you suggesting to be using pivot points only on daily charts? and also what’s the short comings if used on lower time frames?

4

Pivot Points got nothing to do with time frames.
Pivot Points are S&R lines valid for a specific length of time [B]independent[/B] of time frame used.

5

If you use GFT Dealbook like I do, then pivot points are plotted automatically by the computer with just one click of a mouse. :slight_smile:

You can simply click how many lines you want - 1,2,…4 etc.

6

thanks for the explanation

8

There are monthly pivot , weekly pivot , daily pivot and you can plot on any time frame.

The most common pivot is the daily, you can plot in the chart very easy , take the high,low and close prices of the last day, then there many pivot points calculators on the web , and also they have one here in the tools. You put the h , l c then you will get all, then you need to darw horizontal line on the level of each pivot and thats it.

Also there many platforms that offer instant pivot levels plotting . I hope that this answer your question

9

Pivot point is very essential in trading because its what will make you have profit or losses if you trade them properly and well. it’s a very nice method of trading because it helps us to know where probable support and resistance is.