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Chapter 15, Part I. Pivot points – description and calculation. Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 21, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Pipruit: Sounds amazing. And could you show how they look like?​

    Chart #1 | EUR/USD Weekly and Monthly Pivot points
    [​IMG]
    Pipruit: And why do you show monthly pivots for weekly chart?​
    Commander in Pips: Because we should use pivots from the 1-step higher time frame. Say, monthly pivots for weekly chart, weekly pivots for daily and daily for intraday charts. It comes from this feature that the higher the time frame – the stronger the pivot points. Second, because each higher period contains number of lower periods, hence pivot of higher time frame works for a number of lower time periods. Say, monthly pivot will be relevant for four weeks.
    Pipruit: I see, and why do you call them as “Support 1” and “Resistance 1” could be possible “Support2” and “Resistance 2” or what?​
    Commander in Pips: Yes, and not only 2, but 3 also. But these levels have less importance and significance. The major importance has pivot point itself, Support 1 and Resistance 1. Another important thing to note is that “support” does not mean that it always will be definitely support, and the same for resistance. These names just tell that support will stand below the market and resistance above it. When and if market will reach it, they could act differently.
     
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