Pivot Point has the support and resistance levels up to level two
(Levels are covered in this book) so you can take
conclusions if the price falls through (Breakout) Support level one, then
The next price target is the support level two. Likewise, if prices rise
Resistance through level one, the next target is the Resistance
level two.
Pivot Point Analysis in full is as follows:
1. If the price is opened (Open) above the Pivot Point, then the price tends to
strengthened and moved closer to the Resistance.
2. If the price is opened (Open) below the Pivot Point, then the price tends to
to weaken and move closer to Support
3. Efflux (Breakout) Support and Resistance level one usually
is the Short-Term Trend Support and Resistance Breakout sedankan
level two is the Long-Term Trend. However, such analysis should be
view of the strength of the ongoing trend.
4. Pivot Point Person mentioned as Leading Indicators, and not
Lagging Indicators (Leading and Lagging Indicators are described in
Indicators section), so that we can act (act and not Re-Act)
against future price movement if the price is close to the line - a line of Pivot
Point (including its support and resistance)
a) Please look for signals Buy or Sell if prices close to support and
Resistance of the Pivot Point. I mentioned 'find' because we need
seeing things - other things to buy and sell decisions. Although the
is simple at Buy and Sell at Resistance Support, but
reality is not that easy.
b) If the Daily Pivot Point (Short-Term) adjacent to or coincident
(Having almost the same value) to the Pivot Point Weekly (Long-
Term), those points are strong as the Support or Resistance
i. Note the line - a line of adjacent or coincide.
An example is if the line rate support of the Daily Pivot Point
coincide with the Pivot Point Weekly, the Support level one
will be strong enough to withstand falling prices. Or if
Resistance level two of the Daily Pivot Point coincide with
Support level one of the Pivot Point Weekly, the Resistance level
two will be strong enough to make the price. So also
with lines - other lines in the Pivot Point.
c) In connection with the intent that the Pivot Point Person as Leading
Indicators and you are advised to act rather than re-act can be interpreted
as follows:
i. If prices close to support (from Pivot Point Short Term) is strong
(Coincident with the Pivot Point or by reason of Long Term
such as prices rebounded quite often when touched
Support it), attach a Buy, because the expected price will be
bouncing up (rebound) when touched Support
ii. If prices close to Resistance (from Pivot Point Short Term) are
strong (coincident with the Pivot Point or by reason of Long Term
such as price reversal is quite often when touched
Resistance), the pairs Sell position, because the expected price
will bounce off (reversal) when the Resistance was touched
d) Pivot Point produce a pretty good signal when combined with
other indicators, which suggest Person with Candlestick,
Chart Pattern and Stochastic Oscillator indicator. (Candlestick and Chart
Pattern is discussed in different sections in this book)
Selasa, 06 Desember 2011
Pivot Point Analysis
