Summary: Pivot Points

Forex Pivot Points

 

 

Here are some easy-to-memorize tips that will help you to make smart pivot point trading decisions:

  • Pivot points are a technique used by forex traders to help determine potential support and resistance areas.
  • There are four main ways to calculate for pivot points: Standard, Woodie, Camarilla, and Fibonacci.
  • Pivots can be extremely useful in forex since many currency pairs usually fluctuate between these levels. Most of the time, price ranges between R1 and S1.
  • Pivot points can be used by range, breakout, and trend traders.
  • Range-bound forex traders will enter a buy order near identified levels of support and a sell order when the pair nears resistance.
  • Pivot points also allow breakout forex traders to identify key levels that need to be broken for a move to qualify as a strong momentum move.
  • Sentiment (or trend) forex traders use pivot points to help determine the bullishness or bearishness of a currency pair.
  • The simplicity of pivot points definitely makes them a useful tool to add to your trading toolbox. It allows you to see possible areas that are likely to cause price movement. You’ll become more in sync to market movements and make better trading decisions.
  • Using pivot point analysis alone is not always enough. Learn to use pivot points along with other technical analysis tools such as candlestick patterns, MACD crossover, moving averages crossovers, the stochastic, RSI, etc. The greater the confirmation, the greater your probability of a successful trade!

"Pivot Points" Forex Quiz

Save your progress by signing in and marking the lesson complete!

  1. Forex Pivot Points
  2. How to Calculate Pivot Points
  3. How to use Pivot Points for Range Trading
  4. How to use Pivot Points to Trade Breakouts
  5. How to Use Pivot Points to Measure Market Sentiment
  6. Know the 3 Other Types of Pivot Points
  7. Summary: Pivot Points