How Do I Analyze Support and Resistance using Forex Pivot Points?

How to Analyze Support & Resistance using Forex Pivot Points Strategy

Forex traders wanting to trade using forex support and resistance levels can use Pivot Points indicator which is used by forex technical traders to calculate Resistance Levels as well as Support Levels for forex price.

Forex Pivot points will calculate 3 Support Levels below the current forex price & 3 Resistance Levels above the current forex price.

Forex traders can use Pivot Points indicator to find where these Support and Resistance Levels are - and then use these Support and Resistance Levels to open their forex trades or close their forex trades depending on the signals generated by their trading system.

The pivot points forex technical indicator is made up of a center pivot that's surrounded by 3 resistance areas above & Three support areas below

Resistance Level 3

Resistance Level 2

Resistance Level 1

Pivot Point

Support Level 1

Support Level 2

Support Level 3

How Do I Interpret Support and Resistance using Forex Pivot Points?

Support Levels using Forex Pivot Points

Support Levels in Forex Pivot Points are used to generate buy signals

Buy forex signal - when price moves down towards one of the pivot points support area, then touches the pivot support region or moves slightly beyond the pivot support region then it quickly reverses and starts moving upwards.

Resistance Levels using Forex Trading Pivot Points

Resistance Levels in Forex Pivot Points are used to generate sell signals

Sell forex signal - when price moves up towards one of the pivot points resistance area, then touches the pivot resistance region or moves slightly beyond the pivot resistance region then it quickly reverses and starts moving downwards.

Support Levels in Forex Pivot Points are used to generate buy signals

How Do I Interpret Support and Resistance using Forex Pivot Points?