1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Chapter 15, Part II. How to use Pivot points. Page 3

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

Thread Status:
Not open for further replies.
  1. Sive Morten

    Sive Morten Special Consultant to the FPA

    Joined:
    Aug 28, 2009
    Messages:
    9,936
    Likes Received:
    10,634
    14. If the market shows a strong bull/bear trend during a number of weeks on the daily chart when price rarey has touched even weekly pivot points then market close below/above weekly pivot and during of week after that reaches support2/resistance 2– it could tell trend reversal;

    15. If market reaches upward 0.618 Fib extension target at the end of the week and next week’s pivot stands near close price – you may use price action around it as a filter – will market go to 1.0 extension or not. If market will move and hold above weekly pivot on Monday, then probably the next target is 1.0 Fib extension. The same is true for downward move.

    16. Pivot point is a market sentiment indicator. If the market flirts with pivot but holds above it, then the market has bullish bias, if it moves below th pivot and holds there – bearish bias. Hence:

    17. And the most important rule:

    - NEVER STAND AGAINST THE PIVOT! –

    If market is above the pivot – do not enter short, if it below it – do not enter long. This rule is applicable to corresponding time frame. If, say, market moves far above Weekly Pivot point and reaches Weekly Pivot resistance 1 or 2 – you could count on and wait for retracement lower to enter Long in terms of daily time frame (i.e. you should not enter short). But you also could do intraday bearish scalp trade – there is no problem with it.

    Pipruit: Wow, I’ve thought that it will be simpler…​
    Commander in Pips: Heh, son, you act like you want FX Warrant Officer Rank. There will not be simple topics ahead anymore.
    Pipruit: You always know how to cheer us up, Commander. Thank you.​
    Commander in Pips: You’re welcome. And now let’s shift to strategies.
     
    #1 Sive Morten, Dec 21, 2013
    Lasted edited by : Apr 9, 2016
Thread Status:
Not open for further replies.

Share This Page