How to use Pivot Points in Trading Forex?

[axnaSaToTo]

Is anyone encouraged to give a basic class on pivot points? I don�t look for a deep article, just an overview of how they are used. Will you use R1, R2 or R3? Or S1, S2 or S3? And how do you apply them? I don�t need a book, just a few quick comments about its use. Once I have a general idea, I can go putting together my own style. Thank you. 69.3% of the statistics are invented at the time.

[truzdesxxess99]

Well, summarizing, the three most important levels are R1, S1 and the central pivot point (PP).

[axnaSaToTo]

Thank you, that was just what I wanted to know. To confirm: today EUR/USD seems to have bounced very close to S1. So, would you look to leave near R1 or the pivot point if the price stays there for several hours? For what it's worth, I'm pretty new to trading and I'm still practicing demo. For now I just want to find a system that is relatively constant. 69.3% of statistics are invented at the moment.

[josisCaktora64]

Based on the current market situation, the pivot point would be your first target and S1 your second target. If the price reaches the pivot and has no strength to follow, exiting at that level can be a good idea.

[axnaSaToTo]

Thanks liquid4x. 69.3% of the statistics are invented at the moment.

[NesrunesTk]

Luck favors those who prepare themselves.

[axnaSaToTo]

I quote pip_hunter: I use a Camarilla calculator and another one of pivots. I find it more accurate than the classic one. I use the high, low and closing prices of the last 72 hours taking as reference the European opening. So far it has worked quite well. Pip_hunter, the Camarilla thing is new to me. Could you tell me where I can find information about that? I searched Google and only came out a city of California. I will keep looking on my own, but if you have any sources, it is appreciated. Thank you for the suggestion. 69.3% of the statistics are invented at the moment.

[axnaSaToTo]

I quote: The operating table I use in ACM recalculates pivot points around 15:00 MST. I tried a 10-pipe stop trailing but in the mornings, when the market is erratic, I skip the stop always with loss. If I use a larger stop trailing I can withstand sudden movements and usually go a little better. As I said before, I am still in demo so I am testing several systems until I find one that works well. 69.3% of the statistics are invented at the moment.

[UnaxdaCono]

I quote: Pip_hunter, Camarilla is new to me. Could you tell me where I can find information about it? Hello lomfs, I am Roger from Germany. I have a Word document with all the information about Camarilla points. It is very useful to know those concepts. Good reading, and sorry for my English. If you can not open Word, I can also send you a PDF. Roger, chateauboy

[axnaSaToTo]

Thanks Roger, I don't have time to read it right now, but tomorrow I'm sure I'll check it. And don't worry about English, if you write slow in English, better, because I read slow too. I can open Word without a problem, so that won't be an obstacle. Thank you again. Thank you all. You have helped me a lot. I have more information than I can process in a few days, but little by little I will digest everything. 69.3% of the statistics are invented at the moment.

[axnaSaToTo]

Well, thanks to all your help, I think I already have what I needed. I put together a spreadsheet with various formulas and it is protected to not modify fields unintentionally. If you want to change something, the password is "forex". I included some different formulas to compare. If you want to take a look and suggest improvements, go ahead. 69.3% of the statistics are invented at the time.

[axCba]

I know that this thread is old, but as I am new in the forum I cannot open one of my own, and all my trading is based on pivots. I use MT4 only for analysis, not to operate. In my graphics I only have daily, weekly pivots and round numbers. I operate from pivots and use round numbers as a reference for outputs or problem areas. I always analyze daily and run in 4H, sometimes down to 1H to tune the entry. My first goal is almost always 20 pips and let you run one or two more lots if you give the opportunity. On Friday I took three operations. At the demo they are still open, but in my real account I already closed them with profit. Keep it simple and use common sense.

[nucabonudarC]

Monday operations: Two more successful trades. All of USD/JPY's closed with +20 pips. In EUR/GBP two closed operations with +20 pips each, and another one that remains open with the stop at equilibrium point. Keep it simple and use common sense.

[jcesboxxakesresnja]

Tuesday Operations: Loss in EUR/JPY, earnings in EUR/USD and USD/CAD. Keep it simple and use common sense.

[jakosuTk88]

EUR/JPY almost returned to the entry price, I was a little worried, almost touched the stop. EUR/USD reached the first target, the second and third lot are still open, the same for AUD/USD. I don�t usually operate so early in the Asian session, but as I was facing the compu and the settings looked good, I decided to enter. Although the EUR/JPY was a bit risky. Keep it simple and use common sense.

[jisTk147]

I haven't talked much about tickets because most of them are quite obvious. Trade in EUR/JPY may seem doubtful because it hit the daily and weekly pivot, but I thought there was enough room to scratch 20 pips. It's still open with -5 pips. Keep it simple and use common sense.

[axresyn1993225]

I will not continue to publish in this thread. I opened one of my own in the newspaper section, it's called "F S Journal." Keep it simple and use common sense.

[Cr8Sick1]

Keep it simple and use common sense.

[TutesTaSus]

I'm new here, can anyone explain to me what R1, S1 and the other levels mean when you talk about pivot points?

[axnaSaToTo]

R1, R2 and R3 are resistance levels calculated from the main pivot point, while S1, S2 and S3 are supports. They basically tell you where the price might slow down or bounce. If the price breaks a level like R1 strongly, it usually goes to look for R2. But it is not magical numbers. They serve as a reference, but you have to see the price action around those levels. If you see rejection or consolidation, you can look for entry. If you see clean break, maybe it's time to get into the movement.

[axnaSaToTo]

One thing is to read pivot formulas, and another is to apply them live while the market moves like crazy. That�s where you see if you really understand. If you want a tip, don�t use more than 2 levels per session. Tangle with S3 or R3 when even R1 hasn�t touched is like worrying about dessert when you didn�t start the main course.

[axnaSaToTo]

My style is simple: if the price comes close to the pivot point from below and breaks it hard, I expect a pullback and enter in long, with goal in R1. If there is strong rejection in the pivot, I go in short towards S1. The important thing is to observe how the price reacts, not only to enter because "there is the level". The best trades I have done are waiting for the price to confirm with reverse candles or clean breaks.

[axnaSaToTo]

The truth is, it's funny when people think pivot points are mystical levels that price respects like magic. They're statistical tools, not crystal balls. That being said, they do work, but you have to combine them with context. Are you in a trend? Are there news nearby? What do the major frames say? Without that, pivots are just colored lines.

[axnaSaToTo]

I use the daily pivots for scalping and the weekly pivots for swinging. It works quite well if you have patience and discipline. It is not necessary to complicate with 50 indicators. It is best to draw your levels before the session starts. So you have a map and you know which areas to monitor. Then it is a question of waiting for the market reaction.

[axnaSaToTo]

Sometimes I see people entering directly into S1 or R1 as if it were automatic. Then they wonder why it pulls out the stop. The level is not an entry order, it is a warning. If the price approaches fast and without volume, it can be a bounce. But if it comes in hard and breaks, it is better to let it run. The analysis is not static.

[axnaSaToTo]

Use pivot points as decision zones, not as triggers. When the price gets there, don�t click without thinking. Watch how it behaves. Is there a long wick? Reversing wick? Increases the volume? I always expect confirmation. Sometimes the best trade is to do nothing.

[axnaSaToTo]

I tried all kinds of pivots: classics, Camarilla, Woodie, Fibonacci... In the end I stayed with the classics because they are the most used ones. And that detail is not minor. The more people look at them, the more effective they are. Sometimes simplicity wins.

[axnaSaToTo]

For those who do not yet understand: R levels come from the English "Resistance" (resistance)

[axnaSaToTo]

If you think that by being in R1 the price will go down, and you go without looking at anything else, you are playing Russian roulette. Sometimes the price breaks and continues until R3 does not breathe. Use logical stops and manage your risk. Levels are only part of the game.

[axnaSaToTo]

The interesting thing about pivots is that they help you structure the session. Knowing where you could spin or break the market gives you an advantage. But eye: they are not to guess. They are to react better. Many confuse that.

[axnaSaToTo]

I use pivot points as a visual guide, but I don't operate on them if there is no confluence. I need at least price action and an additional divergence or technical pattern. Blind entry just because I'm on S2 or R1 is for traders wanting to donate money.

[axnaSaToTo]

At first I became obsessed with calculations, that if you close Asian, that if London tops... until I understood that it doesn't matter if the calculation is perfect, if the price doesn't react, it doesn't work. Now I just use the classic pivot levels and watch the action.

[axnaSaToTo]

A rule that has served me: if the price breaks the pivot point and comes back hard, it probably goes to the opposite side to the next level. It�s like a false break, very useful. You have to be careful, because that kind of movement usually catches many poorly positioned.

[axnaSaToTo]

R1 and S1 are my favorites. R2 and S2 use them as targets. R3 and S3... well, I hardly ever see them touched. Only on days of very high volatility. So don�t waste your energy waiting for the price to get there. In most sessions it doesn�t happen.

[axnaSaToTo]

Some say that pivot points are no longer useful, that the market has changed. I say that they are still useful, but you have to use them head-on. They are not a magic formula, but if you know how to interpret them, they give you a clear advantage over the one who operates without guidance.

[axnaSaToTo]

The most important thing is not whether the level is S1 or R3. The important thing is what the price does when it gets there. Rejection? Consolidate? Strong break? The graph tells you. Just know how to read it without anticipating.

[axnaSaToTo]

My favorite setup is when the price breaks the pivot point upwards, test it again as a support and confirms it with Alcista candle. Clean entry, stop under the fuse, target in R1. Simple, clear and repeatable. That's what I always look for.

[axnaSaToTo]

Do you want to know if a pivot level is going to hold? See if it meets a previous support/resistance. If they are aligned, the market is more likely to respect it. If it is alone in the middle of the vacuum, it can be pierced like hot butter.

[axnaSaToTo]

I also notice if in the past that same level was congestion zone. If it was, there are more chances that the price will react again. The market has memory, and the pivots sometimes coincide with those memories.

[axnaSaToTo]

One way to validate a level is to use volume. If the price reaches R1 with low volume, there is a probability of rejection. If you do it with strong volume, you may go through it without problem. Everything is context. The level only gives you a starting point.

[axnaSaToTo]

I combine pivots with candle patterns. A hammer in S1 interests me. A shooting star in R1, too. But only if there is context. Candles speak. Levels guide. Together they work very well.

[axnaSaToTo]

Another thing that has worked for me is to use pivots in conjunction with RSI. If the price is in R2 and the RSI is overbought, more reasons to go out or search reverse. I do not use it as a fixed rule, but I do use it as an additional validation.

[axnaSaToTo]

Pivot points are a great tool for those who work fixed sessions. If you only operate London or New York, they help you focus your tickets. But if you do scalping all day, you may not find them so useful. It�s a matter of style.

[axnaSaToTo]

A common trap: to believe that levels will react the same in all pairs. EUR/USD does not move the same as GBP/JPY. Try pivots in the pair you most oper�s. Not everyone behaves the same.

[axnaSaToTo]

Don't get obsessed with each level. If the price breaks R1, it doesn't mean it goes straight to R2. It can spin anywhere. That's why it's key to accompany levels with market structure. It's the combination that works.

[axnaSaToTo]

I usually mark the pivots in M15, but I look at the reaction in M5 or M1 to tune in. So I have the general map and zoom needed to run precisely. It is a technique that has given me very good results.

[axnaSaToTo]

If you're starting, don't want to use all the levels. Just use the pivot point and R1/S1. The rest can wait. Less noise, more clarity. So you'll learn faster.

[axnaSaToTo]

The pivots helped me stop chasing the price. I used to operate on impulse. Now I hope I get to an area and I watch. That just made my losses go down a lot. Waiting pays.