how to apply pivot points effectively when trading forex
TRANSCRIPT
WHAT ARE FOREX PIVOT POINTS?
• Forex pivot points are calculated horizontal price levels on the chart. These levels show potential areas where the price can reverse, especially during the first touch of these levels.
PIVOT RESISTANCE• R1 = (2 x Pivot Point) – Daily Low
• R2 = Pivot Point + (Daily High –Daily Low)
• R3 = Daily High + 2 x (Pivot Point – Daily Low)
PIVOT SUPPORT• S1 = (2 x Pivot Point) – Daily High
• S2 = Pivot Point – (Daily High –Daily Low)
• S3 = Daily Low – 2 x (Daily High –Pivot Point)
TRADING PIVOT POINTS
• Be bearish when the price is below the main pivot point.
• Be bullish when the price is above the main pivot point.
• Go long if the price bounces from S1, S2, or S3.
• Go short if the price bounces from R1, R2, or R3.
The first touch of these levels offers the highest probability of
success.cc: jaredjhansen - https://www.flickr.com/photos/47602407@N02
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