Pivot Point Calculator

Pivot Point Calculator

How the Pivot Point Calculator did came about? First of all, pivot points happen to be structured on a mathematical method first created by Henry Wheeler Chase around the 1930s. We all have to acknowledge Mr. Chase for this particular achievement just before we commence.

Using pivot point calculator as some sort of trading method has been available for a very long time and was traditionally applied by floor traders. Countless floor traders have got to have various ideas regarding where the current market was proceeding throughout the course of the day together with very few uncomplicated calculations. Bear in mind floor traders do not currently have computer systems along with stock chart back then.

Every working day the particular marketplace you happen to be following has an open, high, low and a close for the day. Markets such as foreign exchange tend to be 24 hours but frequently make use of 5pm EST as the open and close. The following information in essence contains all of the actual data anyone will need in order to calculate pivot points.

Why Use Pivot Point Calculator?

Pivot point is actually the level at which the marketplace path fluctuations for the actual day. In case, the dynamics associated with Pivot Points would certainly perhaps specify that they might mainly be of any kind of realistic use to the day trader since they are usually depending on the main previous days prices and are as a result great for only one day of trading.

Once more utilizing straightforward math, the particular prior day high, low and close, a new range of resistance and support pivot points can be produced. The pivot level, support and resistance values computed via that can be jointly identified as pivot points. Pivot Points deliver the results simply by showing points involving support and resistance with regard to the price of a financial instrument that is actually getting traded. These types of areas can certainly become significant aid and resistance levels.

• Pivot points measurements aid figure out whenever to enter/exit trades.
• Pivot points help validate additional technical indicators strategies.
• Pivot points are generally employed to show support and resistance or specific highs and also lows of trading sessions.
• Pivot points assist as primary price indicators for traders.

Why Pivot Point Calculator Are So Great?

The particular reason pivot points tend to be so well-liked is actually that they are usually predictive as in contrast to lagging. They happen to be leading indicators. You actually make use of the information involving the previous day to compute possible turning locations with regard to the actual day you are about to trade current day.

Due to the fact so many traders abide by pivot points you will certainly generally discover that the marketplace does respond at these types of levels. Any time the price actually reaches a pivot point, it will probably either bounce back from it support or resistance or even proceed over and above it.

In the event that the price proceeds past the particular Pivot Point, then the trader can certainly enter the market along with the understanding that the price will statistically go on to rise or perhaps slide past the price suggested by the Pivot Point. This provides you and possibility to trade.

Just before we proceed straight into exactly how you calculate pivot points, we merely would like to lead out that we have insert a great online pivot point calculator below that you can certainly utilize for totally free.

Click the image below to be taken the pivot point calculator page.

pivot point calculator

pivotpointcalculator

 It’s really easy to calculate pivot points.

The calculation for pivot points for today is calculated from the High (H), low (L) and close (C) of the previous day.

Pivot Point Calculator calculates this below…

Pivot point = P = (H + L + C)/3

Resistance 3 = High + 2*(Pivot – Low)
Resistance 2 = Pivot + (R1 – S1)
Resistance 1 = 2 * Pivot – Low
Pivot Point = (High + Close + Low)/3
Support 1 = 2 * Pivot – High
Support 2 = Pivot – (R1 – S1)
Support 3 = Low – 2*(High – Pivot)

Pivot Point Symbols

H = Previous Days High
L = Previous Days Low
C = Previous Days Close

P = Pivot Point
R1 = 1st Resistance Level
R2 = 2nd Resistance Level
R3 = 3rd Resistance Level
S1 = 1st Support Level
S2 = 2nd Support Level
S3 = 3rd Support Level

Pivot Point Evaluation

As you can see from the Pivot Point Symbols above, you have three resistance levels.

Resistance levels are also known as a “ceiling” because these price levels prevent the market from moving prices upward. Why? Sellers start to outnumber buyers and some cases this make the market stop rising.

The order of importance…
Resistance level 3 is the strongest “ceiling” level
Resistance level 2 is the stronger “ceiling” level
Resistance level 1 is a strong “ceiling” level

Remember to keep your eyes on these levels.

You also have the support levels.

Support levels are also known as a “floor” because these price levels prevents the market from moving prices downward. Why? Sellers become weak and buyers start to outnumber the sellers also some cases this make the market stop failing.  Many cases this is a great buying opportunity.  Why? This area where traders see great value and the prices tend to go higher again.

The order of importance…
Support Level 1 is a strong “floor” level
Support Level 2 is the stronger “floor” level
Support Level 3 is the strongest “floor” level

Remember to keep your eyes on these levels too.

Finally you have the pivot point.

It is the strongest of the support and resistance numbers. Why? Market prices tend trade above or below this area before breaking in one direction or the other. Our general guideline, if the market opens above the pivot point to be a buyer on dips and watch for the resistance levels. If the market opens below the pivot point level to be a seller, look to sell on rallies and watch for the support levels.

Conclusion to Pivot Point Calculator

Having the idea of key pivot point, support and resistance points can help you to identify coming up entry points and stop loss areas for the direction of your trades.

This needs to be your daily routine before you look at the markets to calculating pivot point and support and resistance levels before you trade.  With much practice you will get familiar with price action to your current markets you are trading, therefore better trades for your overall trading experience.

 

Daily Forex Signals – Creating Pivot Points

When I first started trading forex, I never thought about using Pivot Point Lines for daily forex signals. Then one day I was reading an article about them and discovered something that has stuck with me ever since. These lines are extremely easy to gather information on. They are designed to stay put for a specified period of time, usually 24 hours, so creating a forex trading plan around them is easy enough. 
There are 7 lines associated with most Pivot Point systems. One central line called the pivot point, three lines spaced above for resistance and three spaced below for support. The calculations of the lines are less important than the testing you do to support their validity. To create the lines on a daily chart you simply need to average the previous days high, low and close. That equation would look like this: 
PivotP = (high+low+close)/3 
I use the following equations to create to the rest of the lines. 
R1 = (2 * PivotP)- Low
S1 = (2 * PivotP)- High 
R2 = PivotP + (High – Low)
S2 = PivotP – (High – Low) 
H3 = (PivotP – S2) + R2
L3 = PivotP – (R2 -S2) 
Once these lines are created you can begin testing them against price action for trading results. The most difficult thing you will have to do now is find a charting system that allows you to program the lines you want to use. Here is a chart that has these lines attached to it. You can see from this recent example on the EURUSD from December 13th and 14th of 2009 that these levels are very valid. 
I will create more articles about testing the pivots and developing trading strategies based on these lines. 
I maintain a blog that talks about Pivot Points and many other subjects all relating to the Forex Market Learning the Trade Forex is Learning Self Control http://easyfxtrades.com/

Importance of Pivot Points in Currency Market

Pivot points are points in the currency or stock market where a bounce is likely to occur. They are very strong points professional traders use as a basis for entry or exit. The pivot point has two major characteristics which includes the resistance and support. 
The resistance region or area in a pivot is simply a region where the price in the market is likely to fall or bounce due to the resistive force in that region. This implies that if a price in the market moves in an upward direction and gets to a resistance it pulls it down, which implies a sell signal. 
Most professional traders who take this into consideration have at least three major resistant and support points with strength of each resistant point increasing as they go higher on the platform. 
The opposite of resistance is support which is regarded as a point or region where the price in the market will be forced to move up when it approaches that region or point. When a price approaches a support it tends to be a buy signal depending on the strength of the support. 
As a matter of fact pivot analysis is the strongest trading tool and that is because every thing in life is characterised by pivot,there is a time to attain maximum height and there is a time to experience a fall. Nothing in life is absolute. 
All professional traders in the world who trade stocks, futures, fixed odds, forex etc always take this into consideration because the pivot is a very significant tool for any analysis. 

http://www.dfxslayer.blogspot.com

Pivot Point Moving Average System – A Better Alternative To SMA

Moving Averages are one of the most widely used technical indicators and are highly popular with technicians or those traders who use technical analysis in their trading a lot. Many automated trading systems also depend on moving averages (MAs). These MAs are used to signal a change in the trend as well as smooth out volatility in the market. 
The simple moving averages (SMA) like the 20 period or the 100 period that takes the simple average of the closing prices in the last 20 periods or 100 periods are the most popular. Now, the problem with the MA is that it is a lagging indicator. What this means is that it gives a signal after the trend starts or ends. 
Now it is a well known fact that many traders lose money using the MA Systems. The reason is simple if majority of the traders use the same MA as predetermined by the default settings in the charting software or the hot favorite 200 period MA, you are bound to lose as a trader since most traders are using these MAs in getting their trading signals. 
If you want to make money with MAs than use a different set of values as compared to those being used by the majority of the traders. If the traders are using the 20, 50, 100 or 200 period MAs than don’t use them in your trading system. One way it to use the pivot point moving averages. 
Pivot points are calculated by dividing the high (H), low(L) and the close(C) by three. PP=H+L+C/3. Now, pivot point price is a more accurate picture of the true average price of a period rather than the closing price that is used in calculating the moving averages. 
Now, what time period to use in calculating the pivot point moving average (PPMA). The best time period is the three period pivot point MA system that is obtained the dividing the three latest pivot point of the past three periods. The three point PPMA can act as a support number in case of a bullish market and as a resistance number in case of a bearish market. 
Now when the market changes direction from an uptrend to a downtrend, the price action will tend to bounce off the three period pivot point MA as a support and then when the downtrend develops, it will bounce as a resistance. 
You can also identify tops and points with this pivot point MA. For example, suppose point A in price action is lower than the point B but you find the pivot point MA at point A lower than that at point B. You can take it as a moving average divergence. This is a strong clue that the market has peaked and a reversal is about to take place. 
So, you can use these pivot point moving averages as a way to filter out market direction as well as determine the true market direction.  The slope of the pivot point moving average can help you determine the market direction. If the slope is up, it means the market is trending up and of the slope is down, it means that there is a downtrend. 
When the market goes from a trending phase into a consolidating phase, it is the slope of the pivot point moving average when combined with the high probability top or bottom forming candle pattern can give you a strong signal about the likely trend continuation or trend reversal. 
Whatever, a pivot point moving average uses more than the closing price of a period rather it uses the true average that incorporates the range of the period and can give you a better picture than the simple moving average. 
Mr. Ahmad Hassam has done Masters from Harvard University. Master these highly profitable Candlestick Patterns with this 82 page PDF FREE Candlestick Guide. Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade.

Easy Understanding of Forex Pivot Points

As you start to learn more about Forex trading you will start to become more familiar with the terms of the trade. Forex pivot points is one of the main terms to know, because most successful traders use them. In this article you will learn why pivot points are the proper tool for the job. How they are used to make yourself some profit for the day. Also what makes up a pivot point calculator, what to pay special attention to and why it is important to use them 
With Forex trading using pivot points is the proper tool for the job. It is quite popular with professional traders. It will show you when and where to enter or exit a trade. It reflects what has happened the day before in trades. Learning to use points will allow you to become much more comfortable in your trading watching the markets movements. 
Once you begin using points, it will be much easier for your stop loss and  target your profits correctly. Knowing when to go long or short is very important.  Traders know at a break of a pivot point, it usually has the largest price movements. The place to look before you enter a trade is the pivot point. It indicates the primary support and resistance levels. 
What makes up a pivot calculator is just 4 figures basically. The 4 figures that make up the charting software is the high, low, open and close prices. Special attention is paid to the central pivot point. Successful traders use the pivot point calculator on a daily basis. There use is to pinpoint the time to react to the price by watching the key support and resistance level. This is important in order to determine when the price is going to stall and just where it is likely to go. 
So in conclusion, keep these facts in mind for the use of pivot points. They are popular with the successful traders  and help in reflecting what has happened the day before. The break of a pivot point usually has the biggest price movements and it is the place to look before a trade. Forex pivot point calculators will allow you to pinpoint the time to react. 
JR Johnson writes about investing and Stock Picks. Visit http://www.investmenteria.com/forex-opportunity/ to learn more

Trading With Pivot Points – A Powerful Tool!

Many traders are not familiar with the pivot point analysis despite the fact that it is one of the most robust, time tested and proven method of market analysis. Pivot Points work in all markets whether it is forex, futures, stocks, commodities or ETFs that have an established range. Range means the high and low in a trading period. 
The high and low are the two most important reference points for a given trading session. The high is a reference point for those who bought out of greed thinking that they were missing an opportunity. Similarly, the low depicts selling out of fear thinking that they would lose by staying in the long trade. 
For calculating the pivot points for any trading session, we use the High (H), Low (L) and the Close (C) of the previous session. 
Pivot Point P = (H+L+C)/3 
Resistance R3=H+2(P-L) 
Resistance R2= P+H-L 
Resistance R1=2P-L 
Support S1 =2P-H 
Support S2 =P-H+L 
Support S3 = L-2(H-P) 
Since there is no formal open and close in the forex market, we can take the NY Bank Settlement at 5:00 PM EST as the close of the daily trading session and 5:05 PM EST as the next day’s trading session open. It is rare to find the daily trading session go beyond the R2 and S2 levels. 
R3 is the extreme resistance level that is usually caused by the news driven price shock and most of the time does not come into play. R2 is the level where the price action mostly experiences significant resistance. However, in case of a bearish market, price action will most often fail to break the resistance level R1. 
Similarly in a bullish market S1 is important while in a bearish market S2 is important. S3 rarely comes into play and is only effective in an extremely bearish market caused by a news driven event. 
Now, you might be feeling analysis paralysis due to information overload caused by too many levels used in pivot point analysis. Here is how you are going to filter these numbers. Pivot Point can be used as the actual trading number in determining the high or low of a given time period. Read the next article on how to filter these numbers. 
Mr. Ahmad Hassam has done Masters from Harvard University. Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade. Download this 1 Minute Forex Trading System FREE!

Daily Forex Signals – Creating Pivot Points

When I first started trading forex, I never thought about using Pivot Point Lines for daily forex signals. Then one day I was reading an article about them and discovered something that has stuck with me ever since. These lines are extremely easy to gather information on. They are designed to stay put for a specified period of time, usually 24 hours, so creating a forex trading plan around them is easy enough. 
There are 7 lines associated with most Pivot Point systems. One central line called the pivot point, three lines spaced above for resistance and three spaced below for support. The calculations of the lines are less important than the testing you do to support their validity. To create the lines on a daily chart you simply need to average the previous days high, low and close. That equation would look like this: 
PivotP = (high+low+close)/3 
I use the following equations to create to the rest of the lines. 
R1 = (2 * PivotP)- Low
S1 = (2 * PivotP)- High 
R2 = PivotP + (High – Low)
S2 = PivotP – (High – Low) 
H3 = (PivotP – S2) + R2
L3 = PivotP – (R2 -S2) 
Once these lines are created you can begin testing them against price action for trading results. The most difficult thing you will have to do now is find a charting system that allows you to program the lines you want to use. Here is a chart that has these lines attached to it. You can see from this recent example on the EURUSD from December 13th and 14th of 2009 that these levels are very valid. 
I will create more articles about testing the pivots and developing trading strategies based on these lines. 
I maintain a blog that talks about Pivot Points and many other subjects all relating to the Forex Market Learning the Trade Forex is Learning Self Control http://easyfxtrades.com/

Gann Ideas, Pivot Points, and Fibonacci Retracements Part 2

Born in 1878, W.D. Gann was one of the pioneers of technical analysis and one of the most successful traders of his time. His concepts and techniques still apply to trading today. Gann was foremost a financial astrologer (this is where he lost me.) and spent countless hours studying cycles, numbers to predict movements in stock and commodity markets with great success,. Some of Gann ideas I use at certain times in my own trading for predicting market cycles, and trends. In this article I will go over a simple Gann System to use when the market is in a tight channel. However before we begin with the technique it is important to stress that Gann believed to successfully trade the commodities markets, you must follow a defined set of rules, never to be violated. His “28 Valuable Rules” are still valid for traders today, and If you wish to read the old time tested rules go to my blog and see them there. Also for a chart view of this article it will be posted there as well. 
The technique is slightly different on shorter and longer time frames. This article will focus on the one hour time frame.I consider a tight consolidation to be approximately 70 pips from the top of the range to the bottom of the range. A consolidation period is longer then 7 bars the longer the better it would mean the market is really winding up for an explosive move once it breaks in general. Seven is a Gann Number, the time cycles and time periods of Gann’s cycles are 90, 84,60, 30, 20, 13, 10, nine, seven, five, three. (FYI) What we want to do is put a horizontal line on the highest high and a line on the lowest low of the consolidation. Once the market breaks up through the top line we can buy the market and place a stop loss at the bottom of the range. Here is the big Gann Trick we want to see three higher closes in a row and Ganns rule would apply. Your target would be the Range multiplied by three. On every bar that’s close is greater then the last four bars closes (as the market is moving up) before it, mark the lowest low of those bars and move your stop loss to that low. If you get three up closes followed by three down closes exit the trade because the market is not ready to carry the rally onward. The opposite would occur if we break the bottom of the range. You would sell that break looking for three times the range on the downside. You would look for three down closes, if you get three up closes after the break down exit the trade because the downward movement may not carry on. On each low close that is less then the previous four bars move your stop loss down to the highest high of those bars. 
This technique is a simple one to use and Gann used this in periods of consolidation. He always would read which way the over all trend was, so if the market broke up but the over all trend was down he would look for rally to fail. If it did not and hit his target of three times the range, the market would be telling him that perhaps there was a change in the trend, or his time cycle might be moving out a bit. 
Here are a sample of Ganns truisms “Time cycles repeat because human nature does not change.” “The trend is your friend” is truly Gann philosophy at its most basic. Gann always looked at the big picture first and felt if you study the past, the future will become an easy read. 
I know this is a difficult to read if you wish to see a video on the technique go to my blog and it will be much easier to understand. 
Thomas Strignano is a retired Chief Foreign Exchange Trader for a major Italian Bank. His 20 plus years of trading (Market Making) in the commercial Forex market makes him an expert in the field. He has developed his own proprietary trading systems and tested them real time in the interbank market. He has trained a number of Forex traders to be profitable, some who are still active at Major International Banks. Tom s major focus is on market timing techniques with technical analysis, forecasting(future) pivot points for major market moves. His overall objective in trading Forex, is use of good Money management, low risk, high reward positions. Please see http://www.tomstrignanoforexexclusive.com

Gann Ideas, Pivot Points and Fibonacci

Many articles and books have been written about WD Gann. I was fortunate enough to read some of his original writings back in the 1990s, a colleague of mine was part of a Gann Society that he paid a huge amount to join. I have studied Gann and have my own version of a Gann system. The most important statement that I read from Gann is “Time is the most important factor, when analyzing and forecasting market movements.” I could not agree more. In this article I will go over how I trade Pivot Points using Fibonacci levels and my version of Ganns principle of Time vs. Price. 
The first points that you must find are what are known as swing points. A swing point is the most recent highest high, or lowest low. There has to be a minimum of 8 big figures between them to be considered moderate swing levels. You could use less point differences they are just not as significant. Once you identify one of these levels you move to the left on the chart (going Back in time) to find the other. I am going to use EUR/USD prices with the dates so you can find what I am doing and apply the analysis. Looking at the most recent price data(today’s date is 1/27/09) we have a solo top made on December 18th 2008 at 1.4720 level. We move to the left and find the lowest low at a double bottom made on October 27, and 28th 1.2330 level. Now we have the swing points to work with. We will find major levels of support and resistance to trade off of using Fibonacci ratios. Then find the daily pivot points to see if any over lapping occurs. 
The formula to find the Fibonacci points are are follows. Take the highest high and subtract the lowest low to find the swing range. That would be 1.4720 – 1.2330 =.239 big figures. Fibonacci ratios are.382,.618,.8200(my ratio),1.382,1.618,2.236,2.618,3.618 We now take the range and multiply by the ratios..239 *.382=.091298 Now we would take the Highest High and subtract that Fibonacci factor. So first level of support would be 1.4720-.0913= 1.3807 Next level of support would be.239*.618=.147702 1.4720-.1478= 1.3242 Next level.239*.8200=.1964 1.4720-.1964= 1.2756 (just to pat myself on the back the low made on Jan 23 was 1.2765) 
You can keep applying the other ratios if you like. They will be good until that top is taken out or a new low is made. 
So once we have these levels calculated we will set up daily pivot points in order to see if any over lapping occurs (overlapping for me is 33points + or -), then I will give you my time verse price lesson. Keep in mind that these Fibonacci levels were past through on the way down, these same levels will now act as resistance on the way up. If they are breached they turn into support again. Lets go over the pivot point formula, and see how we apply it to the major Fibonacci levels. 
The pivot point formula I am about to go over has been used for as long as I have been in the market(20+), and I was taught this formula by a guy who was in Forex since 1976. Like King Solomon said “There is nothing new under the sun” The pivot point formula takes on a new meaning when we have overlapping, with the Fibonacci levels. They become that much stronger, to take advantage of reaction points. Here is the Formula: 
We must first calculate the base point. I calculate the pivot point on a daily bar because we are using daily data.(you can use this on any time frame, just keep the time sequence uniform, and I would not go less then 30 minute bars) Pivot Formula = High+Low+Close/3= x base pivot 
2x-high=support 2x-low=resistance 
I am going to pick today’s trading session.(yesterdays daily bar) to calculate. 1/26/09 Open 1.2974 High 1.3205 Low 1.2860 Close 1.3135 
1.3205+1.2860+1.3135/3= base pivot 1.3066 2*1.3066-1.3205=1.2997 Support level 1 2*1.3066-1.2860=1.3272 Resistance level 1 
Support Level 2 Base pivot -(R1-S1) 1.3066-(1.3272-1.2997)=1.3066-.0275=1.2791(Very Close to that Fib level) Support Level 3 Low-2x(high-Base pivot) 1.2860-2x(1.3205-1.3066)=1.2860-2x.0139=1.2860-.0278=1.2582 
Resistance 2 Pivot + (R1-S1) 1.3066+(1.3272-1.2997)=1.3066+.0275=1.3341 Resistance level 3 High+2x(pivot-low) 1.3205+(1.3066-1.2860)=1.3205+.0206=1.3411 
So these are our daily levels and we would plot them out on the charts with our old Fibonacci support levels that have become your resistance levels on the way up. So how do we trade these pivot points. Well the rule is to get long on a break above and short them on a break down. Easier said then done, because these are very reactionary points that can trade back and forth multiple times, cutting you up as they do. In order to prevent that from happening,you must give yourself a 35 pip stop loss(so if the market breaks up or down and holds above or below the pivot more than 12 minutes stay long or short with a 35 point stop. You need experience with Market Momentum.) This is where my version of Gann’s time verse price rules come into play. You can follow along using hourly charts, I am going to describe how I trade these points. This is what is know as discretionary trading, not a system per say. However, you now can work out your own rules to trade these points. My experience has proven to me that if the trades move quickly into the money,we are on the easy side of the market, and we will get out when the market momentum starts to slow.(I use a trailing Stop order.) 
Let s get into it; The data points that came into play for me was the Fibonacci Point Of 1.3242 it does over lap with my daily pivot point of 1.3272. I would be looking to see how the market reacts to these levels. I am going to write what is in my trading journal of the day so you can see how I traded the market today. It is important to note that I have several primary systems that I trade. This is what I call a semi- trading system, because it is a bit discretionary.This is the environment that I am used to being in;Since I traded the interbank market for many years, It requires a lot of discretionary trading as you make markets. You should only attempt this if you have a good amount of trading experience. I still have hard and fast rules that I stick to when I trade discretionary.Here are my time rules. I will use today’s trading scenario. It would be the opposite if we were trading a support level. It s what I call the 15 minute rule. I break the 15 minutes of time into 3 five minute time frames. Your market attempts to break a resistance level and fails. You sell the level minus 7-9 pips. (our level is 1.3242-9 pips) So you would sell at 1.3233. You wait for a snap back (market retraces and attempts the resistance once again) You sell the snap back rally, for a smaller amount then your base position. (usually 1/3 less; this is a form of pyramiding. Always pyramid with a smaller amount.) Usually the snap back will go a bit higher (12-18 pips; its not a rule just what I have observed.) Monitor the market carefully. Wait another 5 minutes, if not in the money(your losing) close the trade and step back. 
9:15 am EST Market attempts the Fib point of 1.3242 hitting a high of 1.3244 paid. It can’t sustain I sell 3 units of euros at 1.3231 price. I will pyramid on a snap back at the 1.3250 level. I have a over all S/L of 39 points.( just over the 1.3272 pivot level at 1.3281) Take profit 1.3130 level. Market closes on the five minute bar at 1.3239. 9:20 market attempts the 1.3244 high and can’t get over it I miss the bid at 1.3238. I will not add at this time. Market close at 1.3219.So far no snap back. 9:25 We are slightly in the money market in a tight range, I will sell small if I can see 1.3235 40 level. market closes on this bar at 1.3217 level. 9:30 Euro attempts the 1.32 figure and quickly gets paid up. It ends up closing at the 1.3215 level again. The market is choppy and at this point can go either way, if we can t get above 1.3258 I still think we can get back into the value zone of 1.3150. 9:35 Euro attempts to break the 1.32 35 level and is quickly rejected I sell small(1 unit) at 1.3224 price I am not to comfortable with that sale. I wanted to get them out higher.Its closing at the high 1.3227. I can’t add even if we break the 35 level I am all in at this point with my stop set. 9:40 Euro once again attempts the 30 level and fails that’s 3 times, we close at 1.3215 9:45 tight range trade 1.3215 1.3230 9:50 Still tight range trade 1.3211-1.3231 9:55 We finally break the figure and close at 1.3195. 
10:00 We break down to 1.3140 level trailing stop in place. 
10:15 Market takes me out at 1.3153. 
So that s how I trade pivot points. As you can read from above I never did get that snap back, I was a bit on guard, because experience has shown me the longer the amount of time I stood higher, the more chance I had to test the next level of 1.3272. 
My optimal trade would of been to sell the First resistance at 1.3240, have the market fall to the 1.3208 then snap back up to the 1.3260 level, where I would sell again. Then quickly crash down to the 1.3160 level. All within 20 minutes. Trades like that happen often, if you know what to look for (now you do). Today however the market made me work for my money. Cheers Tom 
Thomas Strignano is a retired Chief Foreign Exchange Trader for a major Italian Bank. His 20 plus years of trading (Market Making) in the commercial Forex market makes him an expert in the field. He has developed his own proprietary trading systems and tested them real time in the interbank market. He has trained a number of Forex traders to be profitable, some who are still active at Major International Banks. Tom s major focus is on market timing techniques with technical analysis, forecasting(future) pivot points for major market moves. His overall objective in trading Forex, is use of good Money management, low risk, high reward positions. Please see http://www.tomstrignanoforexexclusive.com

Daily, Weekly And Monthly Pivot Points – How To Filter Out Information Overload?

You must have often heard market analysts talking about the daily, weekly and monthly support and resistance levels. How do these analysts calculate these daily, weekly and monthly support and resistance levels? Most are using Daily, Weekly, and Monthly Pivot Point numbers! 
Difference between a winning trader and a losing trader is what they do with the price data they have. Pivot Point can give you the edge as they are considered to be a leading indicator unlike most other technical indicators that are lagging in nature. Read the first article on Pivot Point Analysis before you continue with this one. 
When you calculate the different pivot point support and resistance levels, you feel overwhelmed by information overload. So, how do you filter that information overload? 
Here’s what you do to filter out noise from these numbers. In low volume consolidating trading sessions use R1 and S1 on all the timeframes. In a bullish market, highs should be higher and the lows maybe higher than those of the proceeding session so use S1 and R2 as the potential trading range. Similarly in a bearish market, the highs should be lower and the lows should be lower, so use R1 as the resistance and S2 as the support. 
These pivot point levels work often as so many institutions and traders use them. Many have taken different size positions and tend to start scaling out of positions as these numbers are approached by the market. So, you should not ignore these different pivot point levels in your trading. 
The daily, weekly and the monthly pivot points reflect the behavior of the day traders, swing traders and the position traders, the three most important groups of traders in the market. By looking at the daily, weekly and the monthly pivot point levels, you can figure out the different support and resistance levels in the market. 
So, if you see the daily, weekly or the monthly pivot resistance or support levels congesting into a narrow zone, this should be noted. Longer term numbers should be watched for clues that the current trend could be exhausted and potentially reverse itself. When you find the three pivot levels on the daily, weekly and the monthly chart lining up nicely, consider it as a signal that the market is going to react strongly around this level. 
Mr. Ahmad Hassam has done Masters from Harvard University. Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade. Try these Forex Signals by two top gun traders!

Forex Trading Tool – Trendlines and Pivot Points Strategy That Makes Winning Trades For Beginners

Are you new to Forex trading? The best way to success is to follow those who are already making lots of money. Forex trading tools of the wealthy traders are something you need. 
There are no Holy Grails or Silver Bullets in trading. However, there are methods that do constantly make more profitable trades than not. If you’ve read any of my publications, you’ll know that I’m not a huge fan of manual trading. With that said, there are a few methods that some successful traders use. One of these tools are called trendlines. 
This tool alone will not work. They need to be used with other indicators. When a group of signs come together, you can visually see that it’s time to make a trade or to exit a trade. 
The Trendline Pivot Point Method 
Before we begin, you need to have a basic understanding of how trendlines are drawn. Here’s a brief overview. 
When a currency pair trends up or down, it makes peaks and valleys. It never goes in a completely straight line. These peaks and valleys made by price fluctuations are where you draw your trendlines. When the trend is down, you draw your trendline on the peaks and on the valleys if it’s trending up. 
This method requires you to draw trendlines on two different charts for one currency pair. One will be drawn on the 15 minute and one on the 1 hour chart. 
15 Minute Chart
Look to see if there is a currency pair that has a clear trend either up or down. If you find one that is trending down, find the last two peaks in prices. Make a trendline using these two points. If it’s trending up, use the last two valley low points. 
60 Minute Chart
Now you need to do the same on the 60 minute chart as you just did on the 15 minute chart. Drawing trendlines on the recent lows or the recent highs depending on which way the currency pair is trending. 
Pivot Points
Now, draw pivot points on the 15 minute charts. This is where you will be pinpointing your trade entry. 
Trade Entry
Let’s say that the EUR/USD was trending down. You see price break through the trendline on the 1 hour chart. Now you watch the 15 minute chart. Price punches up and through the trendline. It then goes through a pivot point that is no more than 5 Pips away from the trendline break. Now you enter a trade to buy. If price was trending up, it’s very similar. You wait until the trendlines on the 60 minute and 15 minute charts are broken and price also punches through a pivot point. 
The most important part is to determine the trends. Don’t try to force it. For this strategy to work, you need to have some nice, easy to see trends on both charts. 
These trades don’t happen all the time. You may find only a few a week. But when you do, you can capture 20 Pips. The way to maximize your profit is to add more lots. I would also use trailing stop loss orders on half of the lots in case you catch a nice long price movement. 
As with any Forex trading tool, you must be very patient and very cautious. Don’t ever try to force a trade to happen. Either the setup is there or it’s not. Looks for obvious trade setups and never deviate from this. 
These simple trendlines and pivot points together with trading the trend can make you some nice profits. These Forex trading tools may make the difference between success and failure as a trader. 
Hector Breton’s passion is trading by using Forex trading tools. He has helped many decide the best way to trade on the Forex market. Find out what he recommends as the only proven method to trade at www.automatedforexsystemtradingblog.com.