Pivot Points – indicators that allow you to accurately determine the critical price levels. These indicators are very important in exchange activities, as they help determine the likelihood of a rebound or breakout. Especially valuable indicator for investors working with support and resistance levels.
Pivot Points show basic price information (highs, lows, and close). The system uses data to form forecasts about support and resistance levels.
In practice, we encounter a large number of types of analysis for the pivot point. Each has its own advantages and features. Pivot Points is classified into the following types:
- DeMark;
- classic;
- based on Fibonacci.
All of these species are combined with a summary of characteristics. Pivot levels are fixed by the values of the past day. To enter the transaction using timeframes M5, M15 or H1. Stochastic indicators and candlestick patterns are confirming signals. The purpose of use – approach to the nearest place with the level of support. Reducing prices under the level of the RR indicates the possibility of a successful sale. Raising says about the need to conclude a deal to buy