Lesson #56 Pivot Forex Trading Summary

• The method practiced by professional traders and market makers to establish entry and exit points for the trading day based on the previous day’s trading activity is called pivot points. The method is best applied when the direction of the trend is already established.

• It can be seen in the charts above that pivots can be exceptionally valuable in Forex because various currency pairs usually rise and fall between these levels.

• Range-bound traders will go into a buy order close to identified levels of support and a sell order when the pair is close to resistance.

• Breakout traders make use of pivot points to distinguish key levels that need to be broken for a move to qualify as a bona fide breakout.

• Pivot points are absolutely a practical tool that can be added to your trading box because it is easy to use. It lets you to catch sight of probable areas that are likely to cause price movement. It helps you to be familiar to market movements and make better trading decisions.

• Be trained to use pivot points along with other technical analysis tools such candlestick patterns, MACD crossover, moving average crossovers, Stochastics overbought/oversold levels. The better the confirmation, the greater your probability of triumph!