{x} | Trading.live

Pivot points are one of the best tools used to time entries and exits in any market.

However, there is a lot of noise on when to buy with pivot points.

To know what works from what does not work we’ll cover a few trade tactics that work in Forex day trading.

We don’t need to overcomplicate technical indicators. Technical indicators are just there for guidelines.

So, as a rule of thumb the KISS strategy (keep it simple stupid) most of the time is the best approach.

Let’s begin…

Maximizing Forex Trading Profits with Pivot Points

These are the 5 most common ways that Pivot Points can guide you through the up and downswings in the market:

Finding support and resistance levels.

Pivot point breakout trading.

Determine short-term market trends. The trend is bullish if we break above Resistance 1. Conversely, the trend is bearish if we break below Support 1.

Intraday trend reversals. If today’s trading range overextends all the way up to Resistance 2 or Resistance 3, there is a high chance that by the end of the day to see a short-term bearish reversal signal. Conversely, if today’s trading range overextends all the way down to Support 2 and Support 3, we can expect a short-term bullish reversal signal.

As for the entry and profit targets: Buy and sell at S3 (R3) if the price is unable to move any further and close the trade by the end of the current trading session.

All pivot points trading strategies revolve around these 5 trading principles.

Next…

Let’s see how to use pivot point in intraday trading.