pivot points are usually based on data from the trading price of the previous day. You take the high, low and closing prices of the meeting and give us the central pivot point, and two lines of support and resistance (designated as S1, S2, R1 and R2) for the current day of the trading day . So, how useful they are a point of view of day trading?
Now, to start the day, they can be used to mark the initial trend for the day, because if the price opened above the pivot point is a sign of the rise, and, of course, if opens below the pivot point and reduce the movement This suggests a downward trend. This is not the main advantage of the pivot points, however.
They are most often used to highlight the levels of critical support and resistance. With so many other traders plot pivot points even on their cards for the price it is a way to react when they reach that level of support and resistance in common. They will either turn in the opposite direction, as they may one of these levels, then give a reversal of trade or the price will go directly through them, in this case, you want to jump on board and can climb the dynamics of the hit.
The highest good is the biggest turning point itself, rather than on others, because here bigger price moves often occur. If the price of turning to embrace just hours, it is often a matter of time before the price breaks sharply upward or downward.
Thus, these values are certainly worth adding to your charts intraday price. It should be noted that it is very difficult to make money only with these three points only. I know there are few dealers, just use pivot points and Fibonacci levels to the Trade Day on the currency markets, but it is very difficult to do in reality.
They are generally better with some other technical indicators, because that way you will be warned that the best set-up. For example, a price move up may not be the pivot point at the beginning of the day that important, but if there is a crossover MACD or ADX moves over the past 20 or 25, for example, suggests Then, the support is strong and the epidemic may be worth trading.
So the point I want to say that the turning points are usually very helpful, view trading day, but you should not really use them in isolation. You should always use a small number of other technical indicators for further confirmation and help you get the best set-up.
