There are several tools that you can use to help you trade the forex market. A really popular tool that a lot of traders use is called pivot points.Pivot points are very useful tools that use the previous days highs, lows and closings to project support and resistance levels for days in the future.
There are a couple of different kinds of pivots that can help you when you want to do a specific type of trading. One type of pivot is called a Daily pivot. Daily pivots are pivots that are calculated from the previous days high, low, and the close which ends at 5pm. Daily pivots are more useful for swing trading.
Another type of pivot point is the 4 hour pivot. 4 hour pivot points are pivots that are calculated from the previous 4 hours and they end at 9:00pm, 1:00am, 5:00am, 9:00am, 1:00pm, 5:00pm. The 4 hour pivot points are very useful for the intraday trading. The last pivot point is the is the long term pivot. Long term pivots provide an area of where key support and resistance levels should be.
Daily pivot points are useful for swing trading; while 4 hour pivot points are useful for intra day trading. Longer term pivot points provide an idea of where key support and resistance levels should be. Place the pivot points on your charts and see how traders appear to give pivot point levels a lot of respect.
You can check out a chart to see all of these pivots in action at actionforex.com. Learning how to effectively use pivots can greatly increase your success in forex trading. You can also have the technical stuff done automatically if you have the right software.
Here's a link with some free info: Forex Pivot Points This article was written by Steve H. We offer forex pivot points expert advise. Visit our site for a free report on the following topics: chart forex signal, predict forex, forex alerts, forex edge Article Source: http://EzineArticles.com/?expert=Steve_H |