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

    Aug 28, 2009
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    7. When market retraces during long-term bear trend on daily chart – it usually retraces to the weekly pivot point or weekly pivot resistance 1. If market breaks pivot resistance 1 after strong down trend – it could be an early notification about breaking of the previous tendency.

    8. Pivot point, resistance 1 and support 1 are the most important levels, others have much less importance.

    9. Combination of pivots with Fib support/resistance, common support/resistance or overbought/oversold areas makes them stronger.

    10. If the market hits some important Fib extension target (usually 1.0 or 1.618) at oversold/overbought area and then moves below/above weekly pivot point – it tells that retracement has started and the move could be very strong;

    11. You may understand why does the market take a directional move or retracement move by applying pivot points. If the market does not touch weekly pivot supports 1 in an up move on daily chart or pivot resistance 1 in a down move and weekly pivot point holds market – then the market isin a directional move. If the market reaches support 1 during up move or resistance 1 in a down move – hence, market falls into retracement.

    12. If the market stands near the pivot point on Monday – it’s better to wait while it will test it during the US trading session and choose the direction before entering the market.

    13. If the market shows a strong bull/bear trend during a number of weeks on the daily chart when price rarely has touched even weekly pivot points and then the market turns to sideways consolidation, forms some bearish/bullish reversal pattern (engulfing for instance) inside this consolidation and close below/above weekly pivot – it could warn about a future strong downside/upside move.
    #1 Sive Morten, Dec 21, 2013
    Lasted edited by : Apr 9, 2016
    Hamza Samiullah likes this.
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