Forex Trading Strategy: Pivot Points Trading Strategy

Pivot Points are often used in forex technical analysis. In fact, the support and resistance points given by analysts are based on the value of Pivot Points. Like many foreign exchange trading strategies, Pivot Points trading strategies are based on probability. The following is a foreign website that conducts probability statistics on each point of Pivot Points.

The chart below shows the probability of the price touching each point of Pivot Points:

The probability of the price touching each point of Pivot Points is as follows:

Resistance 3 (R3) and Support 3 (S3) = 12%; Resistance 2 (R2) and Support 2 (S2) = 33%; Resistance 1 (R1) and Support 1 (S1) = 76%; Pivot Point = 76%

The chart below shows the closing price range statistics.

Closing price range probability statistics:

The probability of closing within resistance 3 or support 3 = 94%; the probability of closing within resistance 2 or support 2 = 82%; the probability of closing within resistance 1 or support 1 = 56%. Here "within" refers to above the support level below the resistance level

From the two statistics, resistance or support at resistance level 3 or support level 3 is the most effective, if you want toTop bottom fishingIt is best to enter the market at R3 or S3, and the stop loss can be set smaller.

There are many types of Pivot Points indicators, but they are basically the same.