There’s a lot more to pivot point calculator than meets the eye. As a trader, you must always be aware of the support and resistance levels to use as used by most intraday trades.
There are many support and resistance trading strategies you can employ in order to minimize risks and maximize profits.
Price always tests support and resistance levels repeatedly. That’s why it’s critical that you use your pivot points levels like regular support and resistance levels. And the best way to achieve this is by use of the pivot point calculator.
Generally, it’s good practice to always suspect a reversal at support or resistance. There’s always a high chance that the price action will reverse after reaching these key levels. Here’s a detailed brief of pivot point trading and how it can improve your trading.
How to Use Pivot Points in Range Trading
The more times that your currency pair touches your set pivot level then reverses, the stronger that level will be. As already mentioned, pivoting basically means reaching strong support or resistance level before reversing.
Generally, you can use a pivot point calculator to keep a close eye on your daily pivot points. These are the critical levels of your intraday timeframe. It’s an efficient forex calculator to have in your corner of trading tools to improve your chances of making profits from your trades.
It’s vital that you learn pivot point strategies and take full advantage of this ultimate support and resistance strategy.
Using pivot points for predictions and the pivot point calculator helps to ease your trading by taking away the subjectivity involved with having to plot support and resistance levels manually.
How Pivot Point Calculator Paves the Way for Successful Trading
As a trader, it’s critical that you learn pivot point trading, by understanding how to calculate the support and resistance levels of your trades. Identify the support and resistance trading zones and use that to support your trading decisions. Here’s a quick guide on how to use the pivot point calculator to identify the pivot point indicator when trading.
Open A Chart
Before you start trading, you must first open a one-minute bar chart of the market that you want to trade and add your daily pivot points.
Monitor the Price as It Moves Towards A Pivot Point
After finding the perfect Open, High, Low, and Close chart, your next step is to wait and watch the market until the price starts moving toward your pivot point.
If, however, you plan on making a long trade, you will notice the price bars making new highs when moving towards the pivot point.
When the Price Touches the Pivot Point
Keep watching the market as the price nears the pivot point. Immediately the price touches the pivot point price, make your trade. A Pivot Point Calculator can be very handy at this point. You can use it to make more accurate price trading decisions.
Enter Your Trade
This is the point where you enter your trade. Place your trade when the low (or high) of the first price bar fails to make the new high (or low) is broken. The trade is when your subsequent price bar breaks the high or low of the entry bar.
Here’s where you also need to monitor your stop low and adjust it accordingly, depending on the market that you are trading on.
It’s also critical to note that there’s no default order type with either the target or stop loss.
For the DAX, however, the recommendation is to put a limit order for your target and stop orders for the stop loss. You only need to establish and use a strong pivot point trading strategy that supports your trade as well.
Wait for The Trade to Exit
After the price meets your pivot point and your required trade and stops loss, it’s finally time to exit your trade. It’s also essential to note that your pivot point bounce trade may take anywhere from a couple of minutes to several hours to reach your stop loss. Here’s where your pivot point calculator comes into play.
Luckily, you can now also find several Online Free Pivot Point Calculator that you can use to determine your pivot point bounce trace.
Depending on the market being traded, you can adjust your pivot point to the next level and adjust the stop loss to break even at the best time.
After filling your target order, you can use the Pivot Point Calculator to determine when your target order will be fulfilled.
If so, then your trade will have been a winning trade. Con the contrary, when your stop loss is the one that’s fulfilled, then you know that your trade was a losing one.
Repeat the Trade
This is the final step of using the Pivot Point Calculator formula. It involved repeating the trading steps from step (d) as many times as you can. Do this as many times as necessary until you either reach your daily profit target.
As a trader, it’s always critical to understand that there are times when price breaks through all the levels.
When this happens, can trust in your trades and hold on to them or try and get back some pips?
The Pivot Point Calculator is definitely one of the best tools to have in your arsenal as a trader and for many reasons.