Lesson #55 A Few Tips on Forex Pivot Point Trading

The following are simple guidelines to keep in mind that can assist in making intelligent decisions on pivot point trading.

• If price is at PP, keep an eye for a shift back to R1 or S1.

• If price is at R1, wait for to a move to R2 or back to PP.

• If price is at S1, wait for a move to S2 or back to PP.

• If price is at R2, wait for a move to R3 or back to R1.

• If price is at S2, wait for a move to S3 or back to S1.

• Price will generally shift from P to S1 or R1 when no major news to affect the market is at hand.

• Price possibly will go straight through R1 or S1 and reach R2 or S2 and even R3 or S3 when there is major news to affect the market at hand.

• R3 and S3 is a good sign for the maximum range for exceptionally volatile days but can be exceeded intermittently.

• Prices will probably vary between the R1 and S1 lines so pivot lines do well in sideways markets.

• Price will blow through a pivot line and keep going in a firm trend.