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Video Forex pivot
Welcome to the second installment on pivot pointsBefore, in the previous video, the first video we looked atthe zones. So the central pivot which is the pink linein the illustration here, the central pivot is the main pivotAnd these R1, R2, R3above it, that stands for resistance and below you got S1, S2, S3that stands for support. So basically what we'vetalked about below the pivotis the buying zone and above the pivot is the selling zone. Now in this videowe gonna expand on that because we gonna look at the actual levelsthemselves. So how do you tradeof pivot points? Well, if we just click down here, you cansee, we've got the period separator. So this white line going down hereshows a new day. So everything to the right hand side to that line is a fresh dayand that's when the pivot points were calculated. Before this line, on thisprice action here these pivots didn't existThat's the crucial thing to bear in mind. So how can you trade? Well, first of allwhat we want to do is we want to look for these pivots what prices they areSo if you can see this
central pivot here is a new fresh reasonto buy from that particular price. However we don't just wannabuy because it's there we wanna match it up with something else. So we would needa fresh reason which is the pivot but also an old reasonSo you can see yesterday here, price came down and bounced off this levelwhen that pivot didn't exist and now existing, it came back down to that levelAnd now it's not only that good old level where traders previously been buyingyou also got the fresh pivot point as a new reason to buyAnd if you just scroll down here you can see onthis one the S1 down hereis exactly the same. Yesterday price came downbounced of it really stronglyRemember this S1 didn't exist yesterday now we got the S1 thereso if this price comes back down you got the S1 as a fresh reasonto buy from this price which was a really goodbuying level yesterdaySo that's how you trade from pivots you need a confluence, you need more than one reasonin the correct zone
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