Pivot Point Trading System

Professional traders use pivot points to identify support and resistance levels in the market. In other word, pivot point, support and resistance are the zone which the market price direction can change, some of Foreign exchange traders assume these levels as psychological levels between supply and demand.

Why Pivot points is very interesting method ?

In other way, pivot point is like fibonacci, but fibonacci still has subjectivity to choose swing high or swing low. Pivot point method is very useful for short term trading, traders use this method to take opportunity from small market price fluctuation. Just like other trading method, support and resistance can use for break or reversal trading technique.


Range bounce trader use pivot point to determine reversal points. They look for pivot point as a zone which they can put buy and sell trading.

Breakout trader use pivot point to determine break levels as a trading confirmation.

Below is a pivot point trading example from EURUSD 1 hour chart.

As you can see, the support and resistance levels are plotted on your trading chart. And they marked well for you!


PP : Pivot Point S : Support R : Resistance

You must remember, support level is not always be a support and resistance level is not always be resistance, and we will explain latter about these. Now we will learn about how we calculate pivot point - support - resistance, how we plot pivot point tool in our trading chart and how many kind of pivot point level.

Here are tips for you to help you in making decision with pivot point tool.

Pivot point is a trading technique that use by foreign exchange trader to determine support and resistance levels.

There are four kinds of pivot point : pivot point standard, pivot point woodie, pivot point camarilla and pivot point fibonacci.

Pivot point levels are widely used in forex market because there are so many pairs fluctuate around the pivot, support and resistance levels. Pivot point can be used for bounce trading, breakout trading and trend trading. Traders use this technique to determine bullish or bearish of a currency pair.

The simplicity makes pivot point become a very useful trading tool in your trading toolbox. You can easily read the market price fluctuation and can improve the accuracy of your trading. Using pivot point analysis never be enough. Learning the pivot point usage with other technical analysis tools such as candlestick pattern, moving average crossover, RSI Relative strength index, Moving Average Convergence Divergence and etc can increase your profits.


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