The Magic of Pivot Point

Hi there..! Welcome to my new weblog..
I'm dedicating this blog for my personal pivot point trading analysis, which I will be posting from this time on. (on weekly basis)

I have been a pivot enthusiast for as long as I can remember. The reason I'm using this technique is that they are predictive as opposed to lagging. You use the data of the previous day to predict present day's market movement. If the price opens above the pivot then the bias is for long trades only. If the price opens below the pivot then the bias is for short trades. This is the core tenet of pivot point trading. Besides that, we look to buy at support levels and sell at resistance levels. But these hold true until we have further confirmation that price is going to "punch" through our support and resistance areas.






Below are several examples taken out from last week's trading.