Some interesting Pivot Points charts from July 2021, and we look at what worked best. This is also a learning opportunity for people who are just learning how to invest with Pivot Points. These posts are meant to show that not only daily Pivot Points but also weekly and monthly Pivot Points can be very […]
The situation on gold and other metals is very interesting, so let’s look at what happened here. Gold was in a sideways movement around the yearly pivot line: There was also a monthly pivot line at around 1812, which had been acting as strong resistance since early July. Today it finally managed to break higher: […]
Leverage trading is one of the main reasons why traders trade forex. Leverage allows you to open much larger positions even with a small capital.
I often write about yearly pivot points. It seems that especially now when we observe strong movements it is worth watching them. The most recent example: SP500 futures. SP500 rebounded last week from yearly resistance at R1: Pretty cool, huh? Does that mean we are in for a downtrend? It is never guaranteed. Pivot Points […]
If you read my blog for some time you know that I like to check yearly Pivot Points. And now we have very interesting situation on EUR/USD. Notice that EUR/USD tried to break through the yearly R3 in late 2020. Without success. It also failed in early 2021, and then started a strong move down. […]
Pivot Points can be very helpful when you want to catch the end of a move. I will demonstrate this with an example of my recent gold trade. Catching bounces – is it worth it These are set-ups with an excellent risk to reward ratio. It’s easy to open positions with possible 1:5 or higher […]
It’s been a tumultuous week for silver and gold. Many hoped that the silver squeeze movement would lift silver prices above the recent high. It was supposed to be the beginning of an all time high move. However, this did not happen. What went wrong? How did the Pivot Points behave? Paper silver prices are […]
The most crucial element in building a trading strategy is backtesting. It is with the help of backtesting that you can: check if your strategy works modify it check the potential for new ideas. The small downside of backtesting – it takes time, especially if you want to test strategy on more instruments. In this […]
The purpose of this publication is to show you how to invest with price action and pivot levels. This is the best combination if you want to catch bigger moves at early stage. We will immediately move on to examples and practical knowledge. At the end you will find chapters with additional commentary. Guide published […]
This week was a good reminder that second and third levels from pivot points can be very powerful. They can be a great help in your trading: if you have a profitable position you can use S2, S3, R2, R3 as targets if you look for trade opportunity you can use these levels to open […]
The site is dedicated to pivot point trading.
What is pivot point trading? It is a technique developed by American traders back in the 80s. It is based on data from the previous candle. So if we are dealing with a daily pivot point, it is based on the data from the previous day, specifically on:
Whatever follows is calculated according to this mathematical formula.
The result is horizontal lines. The middle line is a pivot line. Above the pivot line we have the resistance lines - R. They are numbered R1, R2, R3, and so on. Below the pivot line we have support lines - S. They are also numbered consecutively - S1, S2, S3 and so on.
Most often the price moves between the S2 and R2 lines. It rarely exceeds the level of the third line.
We have pivot levels based on different time frames like:
The most popular are the daily pivot points, but the rest of the above also apply to appropriate strategies.
OK is maybe a few words what you will find on the site, who the author is and why you should consider signing up for the newsletter.
On the site you will find tutorials on how to use pivot points in your trading. There are some materials on the Internet that teach the basics of trading with the help of pivots. However, there is a lack of advanced materials showing how to use pivot points in practice. Especially when it comes to using higher pivot levels like weekly or monthly. This is one of the reasons why pivot-point-trading.com was created.
You will find here both the mentioned educational materials, tutorials as well as news and shorter analyses.
The purpose of the site is NOT to provide investment recommendations. As I mentioned, the website was created so that you could learn how to use pivot levels and make better investment decisions on your own.
First of all remember that this is a tool that informs you about potential support and resistance levels. You can use this information in several ways like:
These are obviously simple examples, there are more possibilities.
But everything depends on your strategy. It should specify your behavior if the price reaches a certain level. Also pivot points are important information here, but the results will be determined by your trading plan.
By using pivot levels you can strongly increase the effectiveness of your strategy. These levels are used by big players as well as by trading robots. They are therefore very often respected. It is up to you to build a trading plan that will use it effectively.
On the website you will also find a newsletter about Pivot Point. It is free and I usually send 1-2 emails a week. They are of course related to Pivot Point topics. I share there short tips and tips as well as inform about the news on the blog and recommend other valuable materials. As I mentioned, it is free and the emphasis is on education. I try to create one of the best newsletters on the market and I sincerely encourage you to join!
The author of the blog is Simon David. Retail trader with years of experience on the market. Pivot point is my passion and I am happy to share it with other traders and teach them how to effectively use pivot point in trading on different markets. If you want to learn more about me please visit About me here.
Below are some of the most common questions. If you have any other questions, please feel free to ask them in your comments or write directly to me. You will find the contact form in the top menu!
You can generally use a pivot point for two things. First one is to close the position. You choose the best points to close a position (and take profit) based on pivot levels. Second - opening a position. You see that the price bounces off a given level with pivot lines and you see a chance to move in the opposite direction and open a position.
Yes, if you are a day trader you can use daily pivot point levels. They will work best here because they are used by traders in large institutions and by trading robots. Note that quite often outside of the standard S and R lines, M lines can act as a place of support and resistance.
Yes, I can. If you are a trader who likes to keep positions open for a few days, weeks or even months then instead of daily Pivot Point lines you can use weekly Pivot Point or monthly Pivot Point. These are perfect for swing trading strategies.
Pivot Points are such a great tool because they work on every market. You can use them successfully in stock trading, Forex market, commodities market and others.
For most investors, especially those who use Pivot Point for the first time, the best choice will be using Classic Pivot Point. They are most often used by both investment firms and trading robots. Therefore it will be the best choice.
Many platforms like TradingView and others have a built-in Pivot Point. However it happens that popular platforms like Metatrader4 do not have Pivot Point built in. Don't worry. You should easily find scripts created by others, usually free. Just look for the pivot point indicator for {name of your trading platform}. You should easily find the right pivot point indicator for your software.
