Indicators: PivotPoint
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Indicators: Pivot Lines TimeZone
newdigital, 2014.01.30 11:06
How to Use Forex Yearly Pivot Points to Forecast Euro Targets (based on dailyfx article)
- Pivot points is a popular and easy way that traders can identify potential support and resistance
- Pivot points are based on a mathematical calculation that uses the previous high, low and close of a specified period; weekly, daily, monthly, yearly
- Yearly pivots can forecast maximum and minimum price extremes for the coming year as well as areas where price can change direction.
While most traders are familiar with daily, weekly, and even monthly pivots which fit their type of trading, yearly pivots can also be used to forecast future potential support and resistance areas. Buying at or near a significant area of support and selling at a key area of resistance is the main focus of any trader no matter what the market or the duration traded. Yearly pivots can be monitored for those key trading opportunities.
As you can clearly see in the Euro chart above, forex yearly pivots have been plotted. Notice how the Euro rallied up to the R2 pivot and turned around sharply falling over 600 pips in February. Another significant area that can be easily seen showing the power of
yearly pivots is the triple touch of the R1 yearly pivot at 1.2910. The
third and final touch led to over a 600-pip rally back to the R2 yearly
pivot to close out 2013 up over 4%.
Could forex yearly pivots show traders the next move in the Euro? In the
chart above the 2014 yearly pivots are plotted on the EURUSD chart. The
year is just getting started and the great thing about yearly pivots is
only having to draw them once a year! EURUSD is trapped between the
central pivot at 1.3461 and R1 at 1.4177. As at the time of this
writing, the Euro has not tested either pivot. However, forex traders
may be waiting for a move down to the central pivot (1.3461) for a move
back toward the R1 (1.4177) yearly pivot resistance.
Alternative scenario is for the Euro to make an immediate run for it up
to the R1 level. At R1 pivot resistance, traders may look to take profit
on their longs and/or short the Euro at this level. However, a close
above R1 could lead to a move higher to the R2 pivot (1.4610). Traders
should also consider the possibility of a close below the central pivot
that could lead to a prolonged down push to the S1 (1.3028) level.
Forex traders who scalpers, position or swing traders can make use of
yearly pivots to locate key areas of support and resistance. Look for
future articles on other currency pairs that lay out the yearly pivot
‘landscape’ to help you navigate the forex market.
IS there a same one for mt4?
can u make it for mt4.
IS there a same one for mt4?
I have converted it to MT4
I just downloaded this but the Daily pivot points need to change every day. All I am seeing is a straight line across the chart which is incorrect because the daily pivots will be different from day to day. Advice?
Hi. Good job.
Please, is it possible to adjust the pivot lines to appear only on the far right of the chart as shown in the attached pic?
I don't like the way they sit on the candle sticks.
Best regards.
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PivotPoint:
Pivot Points are always very useful for trading, this is a simple way to have some idea of where the market is heading during the day.
The indicator also provides the first three supports and resistances. The orange line is the pivot point of the day, the red lines are supports and the green lines are resistances.
Author: okh