Pivot Point Trading – Page 15
May 12, 2019
Renko brick chart trading strategy – how to trade with Renko (Forex, stocks)
Renko is another kind of candles. The most popular are candlestick charts, but there are many others types of charts created in Japan. There is for example Kagi, Three Line Break or Renko chart. Lets focus on Renko.
by Simon
in money management
Why lower leverage is best for you – especially if you’re starting your trading journey
I believe that leverage is reason number one why so many people fail in Forex and CFD trading. I know that because I experienced it by myself and it took me a while to understand that and work on that.
Why should you check yearly Pivot Points
In my trading, I use mostly Fibonacci combined with Pivot lines (daily and weekly pivots). Still, there are times when I check yearly Pivot lines. You may find examples below very interesting. Why Pivot Points lines They are calculated on price, many traders and fund managers follow them. Same with algos and trading robots, which […]
by Simon
in indicators
DEMA (Double Expotential Moving Average) for MetaTrader4 – download
In this section you can download DEMA (Double Expotential Moving Average) for Metatrader4: Download DEMA (Double Expotential Moving Average) I’ll send DEMA (Double Expotential Moving Average) to your email! Subscribe to newsletter and get DEMA (Double Expotential Moving Average) indicator in first message. Newsletter is free and you can unsubscribe at any time. BUT… If […]
Swing trading for beginners – introduction
Swing trading is a popular trading method. This topic is wide, but I will try to present you my approach. If you have any questions about that topic, please feel free to ask in a comment section. What is swing trading? Swing trading is a method of trading where we want to use strong directional […]
by Simon
in indicators
Configure Fibonacci tools (Retracement and Extension) in MetaTrader4 – tutorial
As you know, I use few technical indicators, but the main are Fibonacci Retracement and Extension levels. It is already built in MT4, but you have to configure it so you can use most popular Retracement and Extension levels at one time. Here is how to do it step by step.
by Simon
in indicators
Pivot Points indicator daily, weekly, monthly for MetaTrader4 (mt4) and Metatrader5 (mt5) – free download
In this section you can download Pivot Points for MetaTrader4 and Metatrader5: Download Pivot Point for MT4 & MT5 I’ll send Pivot Points to your email! Subscribe to newsletter and get Pivot Point indicator in first message. Newsletter is free and you can unsubscribe at any time. BUT… If you stay subscribed, you will learn […]
Welcome to Pivot Point trading blog!
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:
- open
- high
- close
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:
- daily pivot points - based on the candle from the previous day
- weekly pivot points - based on the candle from the previous week
- monthly pivot points - based on the candle of the previous month
- yearly pivot points - based on the candle of the previous year
- etc.
The most popular are the daily pivot points, but the rest of the above also apply to appropriate strategies.
What do I find on the website?
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.
Well, let's answer the question if pivot levels are effective and how can they help you trade better?
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:
- as targets for closing a position - e.g. you see the price approaching an important S level and decide to close the position here
- as a place to open a transaction - you see that the movement towards an important S level is followed by a rebound and you decide to take a long position
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.
Newsletter
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!
Who runs pivot-point-trading.com?
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!
The most common questions
What can I use pivot point for?
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.
Can I use pivot point if day trading?
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.
Can I use pivot point if swing trading?
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.
On which markets can you use a pivot point?
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.
There are different varieties of pivot points - classic Pivot Point, Fibonacci Pivot Point, Camarilla Pivot Point and so on. Which are the best ones to start with?
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.
My software has no Pivot Point built-in. Where to get them from?
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.
