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The most powerful way to day trade using pivot points is the pivot point bounce strategy and breakouts of the central pivot point.

Let me explain:

Here is how to identify pivot point day trade setups using the central pivot point.

Step #1:

The market needs to start the new trading day consolidating above or below the central pivot point.

Step #2:

If the market consolidates below the central pivot point we look to buy potential upside breakouts. On the other hand, if the market consolidates above the central pivot point, we look to sell any downside breakouts.

Now let’s see an example:

The pivot point bounce strategy is simply trading bounces off of R1, R2, S1, S2 pivot points with the help of chart patterns.

Moving forward…

Let’s discuss why you should keep an eye on the daily pivot points.