PIVOT POINT IN FOREX
Today I am going to teach you about Pivot Point and Support & Resistance Levels.
Before going to know about Pivot Point you must understand something about Support and Resistance Level.
It is the price area below the current price where prices decline for going further down or Stop and Reverse.
It is the price area above the current price where prices stop for further upside or advances. Like below Chart
I think now you understood about Support and Resistance Level little bit
but you have to go through our topic that is Pivot Point and Support & Resistance.
Before going to trade you have to calculate ranging from the market with below pivot point calculator and understand Support & Resistance Level.
Oh well! how will do it? First of all, you have to take the previous bar high, low, close and open price like
Open == 1.6361
High == 1.6415
Low == 1.6302
Close == 1.6387
R3 = 1.6547
R2 = 1.6481
R1 = 1.6434
PP = 1.6368
S1 = 1.6321
S2 = 1.6255
S3 = 1.6208
Now it is a very important thing that how we will open trade according to these pivot point levels and how ?
OK.. Don’t worry It is No. Problem First of all you have to consider PP(1.6368) this midpoint of GBP/USD = 1.6368.
Now you have to check the current price of GBP/USD in Market of Watch of MT 4. If it is above PP(1.6368) really it means bullish sentiment.
If it is below from this PP(1.6368) it means bearish sentiment. congratulations you must be very happy!! Why ???
because now you know Bullish & Bearish Sentiment.., So What and what is next ???
so we will meet soon!!!
and keep in touch in basic forex links
Also See Here,