5 Great Tips for Pivot Point Trading for the Beginners

Dale jhonson

Trader
Jun 1, 2013
3
0
17
www.fxlingo.com
Pivot Points are considered by some traders as being the most important indicators in Forex. They are easy to identify, and also to use.The Pivot points appear on the charts often,but only some of them are useful.If you don't know about pivot trading you should learn on this topic.
Read More:1.Trading Forex With Pivot Points
2.How to Calculate Pivot Point

Now start to learn more about pivot point trading and here are 5 tips for you

1.If the market opens below above the resistance or below the support of the previous day, it is called a distant opening. This means that the price has a somewhat unusual behavior, meaning that it might correct itself soon. It is harder to trade with those signals, and this is why this method is used only by advanced traders.

2.Don’t enter a trade unless the price takes a clear direction, breaking the pivot points or rebounding from those. Those details are established considering your strategy as a trader, on how many pips you are trying to make and on your profile as an investor.

3.The support and resistance are considered as the daily floor and ceiling of the chart, therefore normally, the price must not move past those. Of course, anything can happen in Forex, especially in a market affected by rumors, but the general tendency of the price is to get back to the central pivot. If the price moves far from the central pivot, it means that your opportunity to trade is getting weaker.

4.When you trade on pivots, keep count of the market on the medium term. If the market trends strongly, the pivots will be breached easier. The traders can take advantage in both scenarios, using channel or breakout trades.

5.If you want to trade on pivots, you will have to use t when the chart is close to the earliest pivot of the day, as this way, you will have an increased chance to open a successful position.

Do you follow any one of the above mentioned tips?. Kindly leave a comment
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
I do not trade pivot points alone. They are good if you are seasoned enough to understand how to use them. As you mentioned there will be plenty of pivot points and only a few are relevant. I think you should always use them with other aspects of analysis.
 

Dale jhonson

Trader
Jun 1, 2013
3
0
17
www.fxlingo.com
Yes Rambo,you are correct.No one should trade depending only one trading tools.Actually We should not trade against trend and it's the most reliable trading tools in Forex trading.Thanks