Pivot point for forex
This article aims to show how to use pivot points when trading the Forex market. Together with classic moving averages, traders like buying or selling at important support or resistance levels. Pivot point for forex, trading is not that easy. These days, any trading platform projects automatically the points needed.
Just plot the right indicator on a currency pair and the levels appear. Because trading is dominated by robots, classic ways to trade around pivots fail. That is, most of the time. The key is to use different approaches when interpreting a pivot point. For example, to use Forex pivot points in combination with another indicator.
Either trend indicator or oscillator, the idea is to have a second confirmation. Before going into more details, let’s start with how to find the pivot points levels. How to Calculate Pivot Points A pivot point Forex traders use considers previous day’s data. There’s a little controversy about that.
It all starts with the daily closing. But, this differs from broker to broker. As such, the closing of the trading day differs. Others use the 4:00 PM EST as the previous day’s close.