Dislikedso for example if u/j is at 94.00 right now and on myfxstreet, the pivot is 94.1933, does that mean i should go short since the price is under the pivot? that seems a bit too easy.....
and how do you know if price is heading back int he direction of the pivot if it ranges 10-20 pips back and forth?Ignored
Sorry for the delayed response! You are correct on that if the price is above or below the pivot you buy/sell after the fact.
For example, let say the pivot on Eur/Usd is at price 1.5000. If price drops below the pivot at price 1.4990, that would indicate a SELL and if price is above the pivot at price 1.5010, that would indicate a BUY. When trading using pivots, look at the pivot as a TREND indicator. When price drops below the pivot the trend is DOWN. When price moves above the pivot the trend is UP. Using the pivot can help traders stay on the right side of the trend and on the right side of the trade.