Technical analysis with Pivot Point - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

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Technical analysis with Pivot Point

Pivot is a tool to determine the level of support and resistance , this stuff is a lot of traders use to bring high efficiency
First, the price you see is observed in any position than the pivot point (located above or below?)
If the price is above the pivot point, the strategic priorities and strategy of the day buy if the price is below the reverse pivot, Sell priorities.
Profit objectives sure S1 or R1 especially close because if someday no news caused breakout, prices tend to return when touched pivot block R1, S1
At the moment there is no news to cause volatility, pivot point just makes a weak levels, prices are likely just around the pivot sideways.
Observe the following example: First, you see that the price is above the pivot and close the gap with pivot:
So what will happen next!? I do not need to guess, I would observe how price reacts to touch this level of support. I expect prices will pop up after S1 but absolutely not in order it this time because they could not be certain that prices have turned up or not !!!
Remember that "expectations" is not a reason for you to decide to order!
You see, the price has found support at the pivot point and has started to pop up, this is the time to secure the command BUY
And here are the results:
Prices bounced and then 1 again test the support pivot.
You may notice the candle "hammer" reversal signal quite sure there.
Thus prices have reached the target R1.
At this time, you will continue to observe how price reacts at it this makes R1.
At the end of the current candle with long upper shadow if proven sales force is dominant, the ability to rotate the pivot point price is very high.
oh, finally fell back to pivot price !!!
1_ To optimize the features identified resistance and support, you should combine with the pattern looks like (shooting star, hammer, doji ....) To confirm signs of reversal.
Examples of reversal patterns: click on the image below