How to Use Pivot
Points (SR Lines) for
⇨Provide good reference points at which to enter
⇨Gives an indication of the market bias. (Bullish,
⇨Can be used to identify future support and
⇨Are used to identify trading ranges.
⇨Can be used for any time frame.
Advantages of Pivot Point Trading
⇨Provides key inflection points.
⇨Which are used to determine when to enter the
market, place stops and take profits.
⇨Helps minimize risk.
⇨Can predict next day trading ranges.
⇨Pivot : is a level at which the current market direction for
the day changes. Market trading above pivot point is seen
as bullish whereas trading below the pivot point is seen as
⇨Resistance : is a point where sellers start to outnumber
⇨Support : is a point at which lots of buyers tend to enter
Range Trading with Pivot Points
SELL, if the price is near resistance
level, & place a stop just above the
BUY, if the price is near support
level & place a stop just below the
Fast, easy & effective way to
determine your Risk-Reward ratio.
⇨Think of pivot points as a new weapon in your
⇨Use them to :
◉predict the next day's trading range
◉get an idea of entry / exit points
◉know the day's bias
⇨Use pivot points along with other technical
analysis tools such as candlestick, MACD, RSI,