Traders frequently rely on pivot points because they help identify potential support and resistance zones throughout the trading day. These levels are derived from the previous day’s high, low, and closing prices. Begin your analysis by the main pivot point by adding the high, low, and close of the prior day and dividing by three. You get the central pivot level, which acts as a reference point for the day’s price action.

From this central pivot, you can calculate extended support. Typically, traders calculate support levels and تریدینگ پروفسور up to three resistance levels. To find the first support, subtract subtracting the previous day’s high from twice the pivot point. The first resistance level is found by subtracting the previous day’s low from twice the pivot point. S2 and R2 use advanced calculations that incorporate the prior day’s trading range, but most trading platforms calculate these without manual input.

Once you’ve established your pivot levels, use them to inform your entries and exits. If the price opens above the main pivot suggests positive momentum, and traders may enter long positions at R1 or R2. Should trading start beneath the pivot signals bearish momentum, and traders might consider selling or shorting near the first or second support levels.

It’s crucial to remember that pivot points gain reliability when paired with other indicators like OBV, EMA, and reversal candles. For example, if the price reaches R1 and you observe a doji, shooting star, or engulfing pattern appears accompanied by shrinking volume, it could be a strong signal to take profits. When price rebounds from S1 and shows strong buying volume, it might be a excellent opportunity to go long.

They don’t guarantee success, and prices can break through them with strong momentum. This makes it critical use protective stops and adhere to strict position sizing. Many traders set their stop losses just past the adjacent support to limit potential losses if the market moves against them.

Intraday traders often focus on the opening window of the trading session, as this is when the most significant price movements occur and pivot levels are most likely to hold. Tracking reactions near key pivots during this window can provide high probability trade setups.

Tailor your pivot approach based on your chosen market. Equities, currency pairs, and commodities may respond uniquely to identical levels due to varying liquidity and volatility. Testing your approach with past price action and practicing in a demo account can build confidence before going live before risking real capital.

With a structured, repeatable pivot strategy and combining them with sound risk management, intraday traders can increase accuracy in predicting price turns throughout the trading day.