Pivot Points Trading Strategy

(Best Indicator Ever)

Pivot Points Trading Strategy

Why Pivot Points Are The Best Indicator

There are many popular and widely used indicators, but only one major indicator is predictive as opposed to lagging. Most indicators display signals after the trade has already occurred, which inherently signifies that it’s a lagging indicator. However, there is one major indicator that professional traders use that doesn’t lag and is predictive. That indicator is known as pivot points. Pivot points take the average of the highs and lows of the previous period and display potential targets in advance for the next period. It’s the best indicator that is actually used by professional traders and it’s highly recommended that you use pivot points as well. Without pivot points, you will be at a major disadvantage.

There is an example in the video above that demonstrates the importance of pivot points. More specifically, the example shows monthly pivot points and how price simply moves from pivot to pivot. Price started from the bottom left of the monthly pivot and went straight up to the pivot above. Once price reached the pivot above, it simply reversed and went straight back down to the pivot below. This is exactly how prices move, every single month, no matter what it is you’re trading. Price travels from pivot to pivot. Sometimes it goes up to the pivot above. Sometimes it goes down to the pivot below. And sometimes it goes both up and down exactly like the example. Regardless, price always travels from pivot to pivot.

Understand the significance here. If you know exactly where the monthly pivots are, then you know exactly where price is headed every single month. There is also weekly pivots. If you know exactly where the weekly pivots are, then you know exactly where price is headed every single week. This is information that you need to use to your advantage. If you can find out exactly where price is headed, then you can trade right to the pivot yourself. In order to capitalize on these very profitable trades, you need to utilize a pivot points trading strategy.

Which Pivot Points Are Best

There are three major pivot points that you need to be aware of. Those include monthly, weekly, and daily pivot points. The monthly and weekly pivot points are more important to use than daily pivot points. Daily pivot points are still great to use for any strategy. But weekly and monthly pivot points will really help you better understand the correct market direction. You need to always trade in alignment with the weekly and monthly pivots.

If price is headed Up to a weekly or monthly pivot, make sure to be trading Up. If price is headed Down to a weekly or monthly pivot, make sure to be trading Down. If you simply follow the direction of price as it’s traveling to a weekly or monthly pivot, you will significantly boost the accuracy of your trade.

How to Enter Using Pivot Points

With Daily Pivots, the key to entering is to look for a Double Reversal Pattern at the Daily Pivot. You either Buy Up if price is reversing Up at the Daily Pivot. Or you Sell Down if price is reversing down at the Daily Pivot. This daily pivot points strategy I give away for free. You can check out some of my YouTube videos which have many examples of this exact daily pivot points strategy.

With Weekly and Monthly Pivots, there are other ways to enter. Sometimes a great entry will be in the middle. Sometimes a great entry might be around the top. And the reason for that is that major players move prices in a very specific way between weekly and monthly pivots.

Important Tip About Pivot Points

One of the biggest tips I can give you is to make sure there is no weekly or monthly pivot blocking your trade. It’s not a good idea to trade through a weekly or monthly pivot. The simple solution is to always trade towards the weekly or monthly pivots, not through them. That is a much better idea. You don’t want to target an area beyond the weekly and monthly pivot points. If you’re targeting something past a weekly or monthly pivot, then your trade might come to an early end when it gets to the pivot. It might even reverse on you as soon as it hits the pivot. It’s always better to be safe than sorry. That’s why you need to make sure there is no weekly or monthly pivot blocking your trade.

Price Levels

Learn More: