Technical Indicators • Types of Graphs • Pivot Points • Fibonacci Retracements • Moving Averages - MACD • Relative Strength Index • Stochastic Oscillator • Bollinger Bands • Commodity Channel Index • Parabolic Stop-Reverse • DMI and ADX • Average True Range

The Pivot Point technique

The Pivot Point technique is a favourite amongst traders for its calculation of Intraday support and resistance levels. The way it works is that it determines a certain number of psychologically important levels that relate to a specific currency pair.

The most important level is the pivot point, if prices evolve above it, it means that we're in an upward trend. The opposite is true for any evolution below this level.

You would therefore take a long position when prices climb past the pivot's level or a short position if the prices fall below the pivot level.

The support (S1 and S2) and resistance (R1 et R2) levels will provide us with objectives to take in our profits.