Pivot points is traded by many Forex traders around the world, with this system traders can determine the support and resistance levels in forex trading chart. Pivot point, support and resistance are calculate the last open, high, low and close. Many experienced Forex traders use this method to determine the targets and stop loss levels. But do you know what is the Pivot point actually? pivot point is the level which the Forex trading pair reverses and turns the trend direction. By using last open, high, low and close, foreign exchange trader get reverence which the sentiments the average of the these price levels open, high, low and close.
In this article I am not going to share about how to calculate pivot point, support and resistance level, but in this article I will share about how to trade with Pivot point, support and resistance in day trading. Usually forex market price trades in range between support and resistance, so when the market price moves at support, then we can predict the market price to trade up to resistance. On the other side, when the market price moves at resistance then we can predict the market price to move up to support.
When the market price trade at or close to the resistance, so we can expect to open sell trading position and plot our target at support. We can also use trend filter to avoid us trade in the wrong direction of the trend. We only open trading position in the direction of the market trend.
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