Thursday, November 09, 2006
Forex Day Trading System - Another popular trading system
Forex Day Trading System - Trade using pivot points
Before the trading is done, it is important that you know about pivot points. A pivot point is a point of support or resistance. Its a kind of mutually agreed point between traders.
In a forex day trading system, the pivot point is calculated using the previous day's high, low and closing value. Generally traders use the pivots in association with important support and resistance levels of a daily chart. As always the longer the timeframe of a chart, the more reliable it is which means the pivots calculated from 1 1 hr chart is more reliable than ones calculated from 15 min. chart
Formulas for calculating Pivot Point (P) - (High + Low + Close)/3
Important Supports and Resistances:
First Resistance (Res1) = (2*P) - Low
First Support (Sup1) = (2*P) - High
Second Resistance (Res2) = P + (Res1-Sup1)
Second Support (Sup2) = P - (Res1- Sup1)
Pivots are very important to learn forex trading online.
Along with these people also calculate a third support and resistance..However, I don't use those.
How to use these points in forex day trading system? That, I'll cover tomorrow..Visit again to learn forex trading online.
Before the trading is done, it is important that you know about pivot points. A pivot point is a point of support or resistance. Its a kind of mutually agreed point between traders.
In a forex day trading system, the pivot point is calculated using the previous day's high, low and closing value. Generally traders use the pivots in association with important support and resistance levels of a daily chart. As always the longer the timeframe of a chart, the more reliable it is which means the pivots calculated from 1 1 hr chart is more reliable than ones calculated from 15 min. chart
Formulas for calculating Pivot Point (P) - (High + Low + Close)/3
Important Supports and Resistances:
First Resistance (Res1) = (2*P) - Low
First Support (Sup1) = (2*P) - High
Second Resistance (Res2) = P + (Res1-Sup1)
Second Support (Sup2) = P - (Res1- Sup1)
Pivots are very important to learn forex trading online.
Along with these people also calculate a third support and resistance..However, I don't use those.
How to use these points in forex day trading system? That, I'll cover tomorrow..Visit again to learn forex trading online.
