A pivot point in financial trading refers to a turning point or condition of a trend, a concept that applies equally to the foreign exchange market . Pivot points represent the level at which the market trend changes from “bull” to “bear” and vice versa from “bear” to “bull. It can be said that the pivot point of foreign exchange trading is the inflection point of the trend when we speculate in foreign exchange . Its presence indicates a trend reversal.
In general, if the market trend breaks the forex pivot point, the view is bullish and will continue to rise, on the other hand, if the market breaks this level, the view is bearish and expect continued decline. And at this level, the FX market is expected to have some support/resistance, and if the price fails to break this pivot point, a rebound from there is justified.
Traders can use forex pivot points as a simple trend analysis tool. The price levels utilized by forex pivot points are easy to calculate and have been the favorite rough reference for floor traders and institutional forex traders for many years, so learning forex knowledge cannot ignore its role.
Simply put, pivot points use the previous session’s high, low, and close to calculate 5 potential intraday support or resistance for market activity in the current session. Assuming you know the previous day’s high, low, and close, you can figure out the five levels above.
Reminder: The dollar’s rise was boosted by safe-haven buying, awaiting Powell’s speech at the ECB forum. For specific operations, please pay attention Reelfinancial.com . The market is changing rapidly, investment needs to be cautious, and the operation strategy is for reference only.