Pivot Points

Pivot Points are considered one of the more simple, but effective strategies.

Primarily used for highlighting Horizontal Support and Resistance levels, which can be used as targets for a setup, as well as invalidation.

For a trader that becomes overwhelmed by excess information, Pivot Points can be a simple tool that clears out the noise and encourages you to stick to your strategy.

There are several types of Pivots that you can use on the charts and for those that favour Fibonacci, you can use a setting that combines the two.

That being said it is worth experimenting with all types of Pivot, as you may find one style more efficient than another.

Pivots can be used for both day and swing trades, just be sure to use the right time frame to produce more accurate results.

For example, the 15-min TF for intra-day trades, 1HR at least for swing trades.

It is worth backtesting Pivot Points on previous chart data before you start trading from it, to understand how they are respected by price action.

As always, never try and force the strategy. If the confluence and context aren't there, then you must factor in additional confluence.

This tutorial will provide you with the strategy and examples for using Pivots.

Time Stamps

03:05 – PIVOT POINTS

• Pivot points can give great targets for a move
• They can give an invalidation of a setup
• Price is drawn towards P Chinese pivot
• Daniel used this strategy in the past (on stock market) but does not use it anymore.
• There are different types of pivots, Daniel likes Fibonacci.  
• R1 and R2 can be used as take profit targets, or even short entries
• S1 and S2 can be used as take profit targets, or even long entries
• When you are trading intraday, 15 minute chart is the best chart for Pivots
• Pivot changes every day at daily open
• For swing trades, best chart is 1H chart for Pivots. They are given once a week, on Monday open

08:35 - EXAMPLE

• A very nice example

15:15 –  PIVOTS

• P becomes a target of the move – like a nPOC it is a nPivot
• P becomes visible at 4 pm UK time
• Price is drawn towards the level but does not have to be hit

16:50 – EXAMPLE

• Pivots can be used as a strategy on its own

20:23 – Q&A

• Calculation of Fibonacci and Traditional Pivots is P = (H + L + C)/3
• It is a simple yet powerful strategy

39:31 – SUMMARY

• Pivot points provide support/resistance
• Intra-day (15m) Swing trade (1h)
• Price is drawn to the Chinese nPivots