Pivot points are still a key element of technical analysis to many traders today and many pivot point strategies exist to take advantage of these important
horizontal support and resistance levels.
These 3 pivot point strategies are just a few of the many pivot point strategies that traders use to take advantage of these strong
horizontal support and resistance levels.
Since these levels are also typically good
horizontal support and resistance levels they are great areas to look for reversal trades.
There are
horizontal support and resistance levels.
Watch key
horizontal support and resistance levels for market sentiment.
However, I'd like to know how far back in time you go to draw
your horizontal support and resistance levels.
Finally, I don't expect you to take my word for any of this, instead, go look at the daily charts for yourself, draw in
the horizontal support and resistance levels and learn to spot the price action strategies that I teach.
We can also mark short - term or nearby
horizontal support and resistance levels to look to trade from them.
When price is obviously bouncing back and forth between
a horizontal support and resistance level, we can wait for price to hit one of the boundaries of the range and then watch for price action signals forming there.
In the chart below note how the «consolidating price action» is bouncing between
a horizontal support and resistance level and is not making HH, HL or LH, LL but is instead going sideways...
Not exact matches
Drawing
horizontal lines at these price
levels can help you develop a sense of where the selling pressure overcomes buying pressure, at
support,
and buying pressure overcomes selling pressure at
resistance.
Price is dropping strongly towards major
support at 1.2966 (multiple Fibonacci extensions,
horizontal swing low
support, Elliott wave theory)
and we expect a bounce above this
level to at least 1.3164
resistance (Fibonacci retracement,
horizontal pullb...
It is now on a good entry
level and good
support and we look to buy above 111.94 (Fibonacci retracement,
horizontal overlap
support) for a push up to 113.06
resistance (Fibonacc...
Price is approaching major
resistance at 0.7697 (multiple Fibonacci extensions)
and we expect a strong reaction off this
level for a drop to at least 0.7634
support (Fibonacci retracement,
horizontal pullback
support).
I use the 8
and 21 daily EMAs for dynamic
support /
resistance,
and horizontal support /
resistance levels are simply your classic technical analysis
support and resistance levels that connect highs to highs
and lows to lows.
Sideways markets can be worth trading IF they are range - bound, meaning they are trading / oscillating between well - defined
horizontal levels of
support and resistance that have good distance between them.
NZDUSD is testing major channel
resistance at 0.6936 (Fibonacci retracement, Fibonacci extension, price action, channel
resistance)
and a strong drop could occur at this
level to push prices all the way down to major
support at 0.6852 (Fibonacci extension,
horizontal swing low
support).
The weekly
support and resistance forex indicator draws
horizontal S / R
levels on the chart based on the weekly candlestick from past week.
These can be trend lines,
horizontal support or
resistance,
and even Fibonacci retracement
levels.
This lesson will only focus on
horizontal support and resistance as I believe it to be the cornerstone on the topic of key
levels.
Now let's look at the same chart with no indicators at all, there is nothing but pure price action
and a couple of
horizontal lines drawn in to show significant
support and resistance levels.
The inclusion of
support and resistance levels (red
horizontal line on our chart), along with some basic indicators, ramps up our chances of winning, thus yielding a «High Probability Fibonacci Forex Strategy.»
Zoom out of your chart
and try to connect using the
horizontal line tool,
support and resistance price
levels.
CADJPY is seeing strong
support above 86.08 (Fibonacci retracement, Fibonacci extension,
horizontal pullback
support, bullish ichimoku cloud, ascending
support)
and a bounce could occur at that
level pushing prices up further towards major
resistance at 86.71 (Fibonacci extension,
horizontal swing high
resistance).