Pivot Points has been used by professional trader for over hundred years now. Even after being in use for the last 100 years Pivot Points are still very popular with professional traders which is an indication of their robustness. Before you continue did you read the post on how to make 600 pips with a small stop loss like 10-20 pips? If haven’t read that post you should, it gives you a very low risk strategy that you would love to trade regularly. In this post we are going to discuss how to trade with Pivot Points. Pivot Points are very simple to calculate. Just add the High, Low and Close of the period and divide it by 3 to get the pivot point for that time interval. For example for the daily time interval, add the previous day’s daily high with daily low and daily close and divide the sum by 3 to get today’s daily pivot level. In the same manner for the weekly pivot level, add the previous week’s weekly high with weekly low and weekly close and divide by 3 to get this week’s pivot level. You must have guessed by now. Pivot levels are leading indicators. Watch the video that explains how to trade with Pivot Levels.
This is another good video introduction on how to trade with Pivot Points!
In the above video you get a very important tip. When trading with pivot points you should look at the last 3 days data. Watch the above video carefully and try to understand this tip. Keep this in mind when trading. Now this is another good video on how to trade with pivot levels!
You should watch all these videos. In the above video you can see the R1, R2 and R3 levels and the S1, S2 and S3 levels that are often calculated by the day traders as their daily support and resistance levels. Below is a video that explains a pivot point strategy.
You can also combine candlesticks with pivot points to find high probability trades. If an important reversal candlestick pattern forms on the pivot level it is an indication that the market is going to respect that level. Watch the video below in which Steve Nison explains how to combine candlestick patterns with pivot points.
As said in the above video pivot points are great for intraday trading. Below is another video by Steve Nison in which he explains in detail how to make bigger winner trades more often by combining candlestick breakout patterns with pivot points.
https://www.youtube.com/watch?v=ukx1FgTM7TU
Now watching these video will take quite a long time. Don’t panic and don’t rush. You can come back to this post again and again for watching these videos. Watch these videos slowly and ponder over them. Maybe you get the ah-ha moment that you have been missing till now. Good Luck!