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.
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 to 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.
Key Points of the Lesson
UTILITY
Can provide targets, a move and even entries.
Can provide the invalidation level for a trade setup.
Possible to design a trading strategy around pivot points.
IMPLEMENTATION
Activate Pivot Points Standard in Tradingview.
Select pivots timeframe:
Daily for intra-day trades.
Weekly for swing trades.
Select pivot type:
Fibonacci recommended.
Use the S and R pivots as support/resistance levels:
R1 and R2 above P ⇒ can be used as price targets for longs or as short entry levels.
S1 and S2 below P ⇒ can be used as price targets for shorts or as long entry levels.
PRACTICAL EXAMPLE
TIPS & TRICKS
Use confluence with the pivots ⇒ Fibonacci tools.
Using a combination of pivots from Asian and American/European exchanges is possible.
TAKE HOME MESSAGE
Pivot points provide support/resistance levels.
Pivot timeframe: daily for intra-day trades, weekly for swing trades.
Price is drawn to the Chinese pivots.