Pivot Points Levels Calculator

How to Use Pivot Point Calculator for Forex Trading

1. Understanding the Pivot Point:

◦ The pivot point is a crucial reference value in this strategy.

2. Observing Market Conditions (10:25-10:30 am):

◦ Take note of the price of the currency pair between 10:25-10:30 am, roughly half an hour after the market opens.

3. Selecting Support and Resistance Levels:

◦ You have the option to choose between standard support and resistance values or Fibonacci levels. Both methods yield effective results; choose the one that aligns with your trading style.

4. Setting Targets and Stop Loss:

◦ Establish a profit target of either 0.75% or 1%.

◦ Implement a stop-loss order at 0.5%.

5. Identifying Market Scenarios:

◦ Several scenarios may unfold between 10:25-10:30 am:

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Scenario 1: Price Below Pivot but Above S1:

▪ Buy the currency pair if the price rises above the pivot point.

▪ Sell the currency pair if the price falls below S1.

◦ Scenario 2: Price Above Pivot but Below R1:

▪ Buy the currency pair if the price surpasses R1.

▪ Sell the currency pair if the price drops below the pivot point.

◦ Scenario 3: Price Close to Pivot (+/- 0.02%):

▪ Buy the currency pair if the price breaks above R1.

▪ Sell the currency pair if the price falls below S1.

◦ Scenario 4: Price Between R1 and R2:

▪ Buy the currency pair if the price breaches R2.

▪ Sell the currency pair if the price dips below the pivot point, but not below R1.

◦ Scenario 5: Price Between S1 and S2:

▪ Buy the currency pair if the price climbs above the pivot point.

▪ Sell the currency pair if the price drops below S2, avoiding buying above S1.

◦ Scenario 6: Price Between S2 and S3:

▪ Follow the same principle as Scenario 5: Buy above the pivot point and sell below S3.

◦ Scenario 7: Price Between R2 and R3:

▪ Follow the same principle as Scenario 4: Buy above R3 and sell below the pivot point.

By adhering to these guidelines and adjusting your trading decisions based on the market scenarios, you can effectively utilize the Pivot Point Calculator to inform your forex trading strategies.