Pivot (PIVOT) used in trading strategy [Forex Demon]

Table of Contents

1. Pivot Line That Investors Worldwide Are Watching
2. What is a Pivot Line
3. Basic Strategies for Pivot Lines in a Downtrend
4. Basic Strategies for Pivot Lines in an Uptrend
5. Actual Chart Analysis - Range Market Edition
6. Actual Chart Analysis - Range Market Edition

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※ This article is a re-edited version of FX攻略.com February 2016 issue

Pivot Line That Investors Worldwide Are Watching

In the foreign exchange market, there exist various turning points and zones that are referred to as levels.

They are sometimes called support lines (support lines) or resistance lines (resistance lines), and around them you often see characteristic price movements.

There are many kinds of support and resistance lines, but the one I pay the most attention to is the “Pivot Line.”

This is based on the premise that past price movements influence the current exchange rate, and uses the previous day’s high, low, and close to determine the day’s resistance and support bands.

Of course, pivot lines do not capture all ups and downs of exchange rates perfectly; they are at best a psychological turning point.

Nevertheless, the majority of currency traders worldwide look at charts and trade, and pivot lines are representative levels or zones that are kept in mind.

In this sense, pivot lines are often points where price bounces or trends reverse, making them extremely useful when considering timing for short-term trades such as day trading.

In this article, I will explain specifically how I use pivot lines for short-term trading.