How to Trade the Pivot Points

Trading the Pivot Points

Resistance Levels
Support Levels

This is a comprehensive chart of R3, R2, R1, PP, S1, S2, S3, the Resistance Levels, Pivot Points and the Support Levels of each currency pair. Currency pairs move from the Support Levels to the Pivot Point Level then up to the Resistance Levels then back to the Pivot Point down to the Support Levels again repeatedly. 

It could originate from either top or down depending on the end point of the last price action of the previous day. It provides you enough information to confirm the next possible direction of price action while getting you set for a trade entry as well as an exit point.

R3 ---I-----------------------------I-----------------------------I------------------

R2-----I-------------------------I------I----------------------I------I----------------

R1-------I---------------------I----------I------------------I----------I--------------

PP----------I----------------I---------------I-------------I--------------I------------  

S1-------------I------------I------------------I---------I------------------I----------

S2-----------------I-------I--------------------I------I----------------------I--------

S3---------------------I----------------------------I---------------------------I------

If you get used to this trading tool, you could successfully ambush a currency pair on its way either up or down to take good profit away along the direction of price action. Note however that when the trend becomes consistently bullish, Pivot Point shifts with  the trend, that is, it moves up and when it is consistently bearish, the Pivot Point will move downwards.