Pivot Points

Pivot Points

Pivot Points

We continue to progress in our Forex course and in this case we will see what the Pivot Points are.

Professional traders use pivot points to identify important levels of support and resistance.

A pivot point and its levels of support and resistance are areas to which the price is likely to go.

Pivot points are especially useful for Forex traders who use short term trades and are looking to profit from the small price movements in the Forex currency market.

Pivot points can be used by both range-bound traders and breakout traders.

Rank traders use pivot points to identify levels where price rebounds.

Breaking traders use the pivot points to recognize key levels that may undergo a possible rupture, ie where a support or a resistance can yield to pressure.

This is an example of pivot points on a 1-hour EUR / USD chart.

[caption id="attachment_775" align="aligncenter" width="525"] Pivot Points[/caption]

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.