forex signals

Pivot points, an often overlooked technical analysis tool, can be a game-changer in daily Forex trading. Let's delve into what pivot points are, how to calculate them, and practical strategies for incorporating them into your trading routine. Understanding Pivot Points Pivot points are a mathematical formula used to identify support and resistance levels. This objective tool automatically determines potential areas where a currency's price might rise, fall, or stall. Derived from pure mathematical calculations, pivot points rely on historical high, low, and closing prices. Traders primarily apply this indicator in day trading, using weekly or monthly quotes as the basis for calculations. For intraday trading, daily pivot points are commonly utilized. The Pivot Points Formula The formula for pivot points involves essential data points: Closing price (C) Highest price within a period (H) Lowest price within a period (L) The pivotal point (P) is calcula

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Unlocking EUR/USD Trading: Strategies, Tips, and Analysis for UK Traders

InstaForex Analysis InstaForex Analysis 05.09.2023 14:45
Analysis of transactions and tips for trading EUR/USD The test of 1.0790, which occurred on Monday afternoon, coincided with the decline of the MACD line from zero, prompting a signal to sell. However, normal downward movement did not occur due to low market volatility caused by the US holiday Data on service and composite PMIs, as well as PPI in the eurozone, lie ahead, and they could lead to a further drop in EUR/USD provided that the reports show a downward revision. This means that market players should be inclined more to short positions, especially in the morning. If sellers do not show activity after updating the monthly lows, it will be more appropriate to consider long positions.     For long positions: Buy when euro hits 1.0788 (green line on the chart) and take profit at the price of 1.0829. Growth may occur after hawkish statements from the ECB and strong statistics in the eurozone. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it. Euro can also be bought after two consecutive price tests of 1.0760, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0788 and 1.0829. For short positions: Sell when euro reaches 1.0760 (red line on the chart) and take profit at the price of 1.0722. Pressure will increase in the event of poor PMI data. However, when selling, traders must ensure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0788, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0760 and 1.0722.   What's on the chart: Thin green line - entry price at which you can buy EUR/USD Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely. Thin red line - entry price at which you can sell EUR/USD Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely. MACD line- it is important to be guided by overbought and oversold areas when entering the market   Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.
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Unlocking the Power of Pivot Points in Forex Trading: A Comprehensive Guide for 2024

FXMAG Education FXMAG Education 24.01.2024 07:56
Pivot points, an often overlooked technical analysis tool, can be a game-changer in daily Forex trading. Let's delve into what pivot points are, how to calculate them, and practical strategies for incorporating them into your trading routine. Understanding Pivot Points Pivot points are a mathematical formula used to identify support and resistance levels. This objective tool automatically determines potential areas where a currency's price might rise, fall, or stall. Derived from pure mathematical calculations, pivot points rely on historical high, low, and closing prices. Traders primarily apply this indicator in day trading, using weekly or monthly quotes as the basis for calculations. For intraday trading, daily pivot points are commonly utilized. The Pivot Points Formula The formula for pivot points involves essential data points: Closing price (C) Highest price within a period (H) Lowest price within a period (L) The pivotal point (P) is calculated as the arithmetic mean of these values: P = (C + H + L)/3. Further calculations yield resistance and support levels: First Resistance (R1): R1 = 2*P – L Second Resistance (R2): R2 = P + (H – L) Third Resistance (R3): R3 = P + (H – L)*2 Similarly, support levels (S) are determined: First Support (S1): S1 = 2*P – H Second Support (S2): S2 = P – (R1 – S1) Third Support (S3): S3 = P – (H – L)*2 Applying Pivot Points in Practice Various approaches exist for leveraging pivot points in making investment decisions. Traders may customize their use based on individual trading methods. Here are general guidelines to aid in concrete actions: Buying and Selling Zones: Typically, above the pivot points line, traders consider a selling zone, engaging in short positions. Conversely, below this line lies the buying zone, where long positions are common. Viewing pivot points as reversal points, traders anticipate price consolidation. Opening a position occurs when the price drops to the S1 level, with a selling signal when reaching the R1 level. Prices often oscillate between R1 and S1, the first resistance and support levels. Breakout Strategy: Alternatively, traders might opt to open a position after breaking a designated level, anticipating a continuation of the established trend. In this scenario, a sell position is initiated when the price falls below S1, while a buy position is triggered when the price surpasses R1, with the aim of reaching a value close to R2. Pivot points serve as one of the many tools for making investment decisions. Some traders find them invaluable, using them frequently, while others incorporate them as a supportive element alongside decisions driven by other analyses. Every trader should experiment and devise a personalized trading strategy. However, for optimal and reliable results, it is advisable to use this method concurrently with other approaches. Incorporating pivot points into your trading arsenal can provide a valuable edge, helping you navigate the complex landscape of Forex markets more effectively. Remember, while pivot points offer insights, combining them with a diversified strategy enhances your overall trading acumen.      

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