Lesson 9 – Pivot Points

Pivot points are essential tools in Forex trading, helping traders identify key support and resistance levels that can signal potential market reversals or breakouts. Calculated from the previous day’s high, low, and close prices, pivot points offer clear entry, stop-loss, and profit target levels. They can be used in both range-bound and breakout trading strategies and are often combined with other indicators like moving averages and candlestick patterns for more robust analysis. While standard pivot points are popular, variations like Woodie, Camarilla, and Fibonacci pivot points provide additional perspectives, making them versatile tools for traders of all styles.