Pivot Trading

Pivots are important levels that can be used as support or resistance in various timeframes.We will focus on DAILY and WEEKLY pivots as they are working the best.

Pivot points are ot the top of our trading arsenal list.These are the list of pivots that traders mostly use.

1.CLASSIC PIVOTS

2.CAMARILLA PIVOTS

3.WOODIE PIVOTS

4.OHLC PIVOTS 

5.FIBONACCI PIVOTS

For now we will not get in depth of how each one is calculated.We will use an indicator instead to implement it for us.We need to learn how to trade for best results.The pivots we will use are 1.CLASSIC PIVOTS and 2.FIBONACCI PIVOTS.

Pivot points consist of MAIN PIVOT level ,SUPPORTS and RESISTANCES.

Example 1

At example 1 we have implemented  CLASSIC PIVOTS at a EURAUD  DAILY CHART.Even if we scale down on 4h or 1h chart ,pivots will still be daily pivots.

Even for the amateur traders eye it is obvious that price do hit pivot points and respects a lot of them.We will take advantage of this and make our trading moves.

TRADING STRATEGIES

                                   1.BUY ABOVE DAILY PIVOT LINE

In this strategy we will simply wait for price to be above daily pivot and return for a hit at  a resistance level.

                                       2.SELL BELOW DAILY PIVOT LINE

In this strategy we will simply wait for price to be below daily pivot and return for a hit at  a support level.

                         3.BUY AFTER  DAILY SUPPORT PIVOT HIT

At this strategy we will counter trade.That means that when we are below pivot we will enter a buy at a support level.

                         3.SELL AFTER  DAILY RESISTANCE PIVOT HIT

At this strategy we will counter trade like strategy 3.So when we are above daily pivot we will enter a sell at a resistance level.