SP500 bounce from yearly R1 level
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 give us the opportunity to enter near the start of a new move. This allows you to set a stop loss quite close.
Some other examples where yearly Pivot Points worked with mega accuracy. The peaks on bitcoin in April at yearly R3:
EUR/USD last year stopped at yearly R2 and yearly R3. In 2021 correction down to the yearly pivot line, next move to M line and sell-off:
Big money printing, post Covid recovery and many other things make us see strong price movements in equities, commodities etc. It is worth checking from time to time yearly pivot points because as you can see the price often respects them.
I use this Pivot Points script for Metatrader 4.
After adding it, go into options and change the settings to yearly.
Have a good trading week!