HOW TO TRADE USING PIVOT AVERAGE FOR PREDICTIONS BEST TRADES
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Pivot points are used by traders in equity and commodity exchanges. They're calculated based on the high, low, and closing prices of previous trading sessions, and they're used to predict support and resistance levels in the current or upcoming session. These support and resistance levels can be used by traders to determine entry and exit points, both for stop-losses and profit taking.
- A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames.
- The pivot point itself is simply the average of the high, low and closing prices from the previous trading day.
- On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment.
- Here we go over how to calculate pivot point levels and use them in practice.
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