Trading with Pivot Points

What are Pivot Points?

A Pivot Point is nothing more than a level or point where market direction changes.  Once calculated, Pivot Points can yield some important support and resistance levels to work off of.  So think of Pivot Points as markers on a map or markers on a chart.  In the case of FOREX Trading, they can be viewed as points of interest that you can use to trade from or as potential future trading opportunities.

Pivot Point Calculation

Pivot Point = (Daily High + Daily Close + Daily Low) / 3


Support 1 = 2 * Pivot Point - Daily High
Resistance 1 = 2 * Pivot Point - Daily Low

Support 2 = Pivot Point - (Resistance 1 - Support 1)

Resistance 2 = Pivot Point + (Resistance 1 - Support 1)

Pivot Point Trading Strategy

One of the easiest trading strategies is simply to see what the day may look like right at the open.  If the market opens above your calculated Pivot Point, you will want to buy.  On the flip side if the market opens below the Pivot Point, you will want to sell.  You will remain a buyer / seller as long as the market stays above / below the Pivot Point.  This is the most basic level of Pivot Point trading.

There are more strategies and methods involving trading with Pivot Point and can be easily found when you do a search on the internet.

Triangles...

ASCENDING TRIANGLE


Ascending Triangles is a bullish continuation pattern that is shaped like a right triangle consisting of two or more equal highs forming a horizontal line at the top.

DESCENDING TRIANGLE


Descending Triangles is a bearish continuation pattern indicating distribution consisting of two or more comparable lows forming a horizontal line at the bottom. Descending triangles are bearish patterns that indicate distribution. The definitive bearish signal of a descending triangle is when support on the lower rung of the triangle is broken.

SYMMETRICAL TRIANGLE


Also referred to as a coil, usually forms during a trend as a continuation pattern. It contains at least two lower highs and two higher lows. At the time these points are conjoined, the lines converge as they are extended and the symmetrical triangle takes shape. One can also think of it as a contracting wedge, wide at the beginning and narrowing over time.

EXTENDING TRIANGLE


Extending triangle does not occur frequently and is likely to be detected at tops and bottoms after lengthy price moves. Again a minimum of two tracking points for each trendline is needed before a breakout.

Determined to be a Spot Forex Dealer

I was told about this opportunity by Ruilong who had seen the advertisement in Straits Times.  We sent our resume to the email address and attended the career briefing.  Thereafter, I decided to take on the training program and learn to trade forex profitably and earn a rewarding income monthly.

I started the training program since 5 Apr 2010 and is presently going through nothing else but trading sessions, just like what the advertisement had said, Training in Forex Trading is in the Trading itself.  I have yet to reach the stage where I am profitable, but I am determined to be one day.  I also want to become one of the proprietary forex dealer for the company to trade for institutions.

For now, I am just going to concentrate and stay focus on my trading to be profitable. ;p