How To Trade Forex With Pivot Points?
A look at how pivot points can help you find attractive areas to enter the market.
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://bit.ly/2HFykNd
-----
Had a question about how to trade Forex with pivot points, and here's a simple demonstration.
So for example, today we have an upside bias on the Australian, US dollar currency pair. Risk sentiment is broadly on after good news concerning a vaccine for the treatment of COVID-19 has spurred equity markets, and risk sentiment remains positive at the moment for the day.
So given the fact that our bias for the Australian, US dollar is upside, we're seeing US dollar weakness, US dollar's been acting as a safe haven currency, so we are expecting further US dollar weakness, and the Australian dollar, as a high beta currency, we are expecting strength.
So we are expecting Australian, US dollar upside. So the way you would apply this to trading with pivot points is really quite simple. So on the TradingView platform you have the option of using pivots, and here's some traditional pivot points and they're just overlaid on the chart.
Now, the way it works is that you want to buy from support levels. So just use the pivot points in exactly the same way as you would support and resistance. So this would tell us that on this intra-day basis, any return back to this R1 level could be considered suitable for buying, and similarly, any return to this pivot point, the actual pivot point could be considered suitable for buying, and anything below could be suitable for buying.
Now obviously, this is an intra-day trade, so you'd have to get quite a long way down, it's unlikely we'd go as far down as the support one level. But if we did and if sentiment still remained the same, then we could consider longs from these levels here.
So that's the way to use the pivot points, use them as support and resistance levels, and the basic rule of thumb is that any pull back into those support levels can be considered opportunities for buying when you have an upward bias on the pair.
If your bias is to sell the pair then any moves back up to the higher resistant pivot points would be considered suitable for shorting. So that's just the rough rule of thumb for trading with pivot points. You're buying from the levels below and you're selling from the levels above.
-----
If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://bit.ly/2HFykNd
-----
Had a question about how to trade Forex with pivot points, and here's a simple demonstration.
So for example, today we have an upside bias on the Australian, US dollar currency pair. Risk sentiment is broadly on after good news concerning a vaccine for the treatment of COVID-19 has spurred equity markets, and risk sentiment remains positive at the moment for the day.
So given the fact that our bias for the Australian, US dollar is upside, we're seeing US dollar weakness, US dollar's been acting as a safe haven currency, so we are expecting further US dollar weakness, and the Australian dollar, as a high beta currency, we are expecting strength.
So we are expecting Australian, US dollar upside. So the way you would apply this to trading with pivot points is really quite simple. So on the TradingView platform you have the option of using pivots, and here's some traditional pivot points and they're just overlaid on the chart.
Now, the way it works is that you want to buy from support levels. So just use the pivot points in exactly the same way as you would support and resistance. So this would tell us that on this intra-day basis, any return back to this R1 level could be considered suitable for buying, and similarly, any return to this pivot point, the actual pivot point could be considered suitable for buying, and anything below could be suitable for buying.
Now obviously, this is an intra-day trade, so you'd have to get quite a long way down, it's unlikely we'd go as far down as the support one level. But if we did and if sentiment still remained the same, then we could consider longs from these levels here.
So that's the way to use the pivot points, use them as support and resistance levels, and the basic rule of thumb is that any pull back into those support levels can be considered opportunities for buying when you have an upward bias on the pair.
If your bias is to sell the pair then any moves back up to the higher resistant pivot points would be considered suitable for shorting. So that's just the rough rule of thumb for trading with pivot points. You're buying from the levels below and you're selling from the levels above.
-----
If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
