I won’t say fundamental analysis is easier but I find it more comfortable to use. However I know that to get better results you need to apply both fundamental and technical analysis. So I am trying to get better at pivot points strategy to identify potential profit targets for a trade. To be honest, it isn’t working for me. A friend of mine suggested using additional validation tools such as trend lines, moving averages, Fibonacci levels , candlestick patterns and price action to use in conjunction. I just want to know what your views are. Should I use other technical indicators, if yes then which do you think works better when combined with pivot point strategy?
- #4
- Nov 5, 2021 9:49am Nov 5, 2021 9:49am
- | Commercial User | Joined Nov 2021 | 2,065 Posts
I often use the Classic strategy based on pivot points in trading. Here's a simple example of a good trading strategy:
For example, when the price rises above R1, day traders can place a buy order at that point and lock in their profit at R2 or R3. Likewise, if the price crosses S1 downwards, traders often enter into sell deals and take profits at S2 or S3.
Pivot points, when used correctly, can be extremely helpful to the forex trader. In fact, there is no better technique, as well as the worst. As with many other forex trading tools, there is no particular pivot point better than another. It's all about your preferences.
For example, when the price rises above R1, day traders can place a buy order at that point and lock in their profit at R2 or R3. Likewise, if the price crosses S1 downwards, traders often enter into sell deals and take profits at S2 or S3.
Pivot points, when used correctly, can be extremely helpful to the forex trader. In fact, there is no better technique, as well as the worst. As with many other forex trading tools, there is no particular pivot point better than another. It's all about your preferences.
