Trader DNA
This video introduces a profitable pivot points trading strategy that is applicable to currency trading, stock trading, and crypto. Pivot points provide useful information for traders to track support and resistance levels and execute orders. Reasons why traders love pivot points include being unique for day trading, accuracy, a rich set of data, ease of use, and short time frames. The video also explains the floor traders pivot points and the rules for trading with pivot points.
Pivot Points Trading Strategy: A Simple Yet Profitable Approach
Introduction: Overview of Pivot Points and Trading Strategy
Pivot points are an essential tool for traders to identify trends and reversals. In this video, we will go through a simple yet profitable pivot points trading strategy that day traders can use to enter and exit positions. We will cover the significance of pivot points, how to read them, and how to employ them as part of your overall trading plan to maximize your profits.
Why Pivot Points are Important for Day Traders
Pivot points are one of the few leading indicators that day traders should use to enter a trade. They provide unique and high-accuracy data for shorter time frames. Day traders can use pivot points to determine levels of entry, stops, and profit-taking. Pivot points are easy to use and are offered by most trading platforms.
Floor Traders Pivot Points
Floor traders pivot points are identified as the most popular pivot points among traders. The central pivot point represents the intraday point of balance between the buyers and sellers, and is usually where the largest amount of trading volume takes place. Many traders track support and resistance levels and execute their orders when prices approach these specific levels.
How to Read and Use Pivot Points
Only when prices reach a certain point can a trader determine whether to go long or short, and set their profit objectives and stops accordingly. Pivot points can determine whether the outlook is bullish or bearish. If the price decreases below the pivot, the first target is support, while if the price rises above the pivot, the first target is resistance.
Pivot Point Trading Strategy
The essence of trading with pivot points is based on the idea that the price tends to reach yesterday’s close point more often than to overcome the previous day range. The most popular calculation period for pivot points is daily, and the central pivot point is the most important part of the whole setup. The trading rules for this strategy are straightforward and involve buying at support and selling at resistance.
Conclusion
The pivot points trading strategy is a straightforward yet highly effective approach that day traders can use to maximize their profits. Pivot points provide unique and high-accuracy data for shorter time frames, and they are easy to use and understand. By employing this strategy as part of your overall trading plan, you can identify trends and reversals, and determine levels of entry, stops, and profit-taking to achieve a successful trading outcome.
