Mapping Trading. It helps to have a map and be able to see where the price is compared to previous market action. Thus we can see how the sentiment of traders and investors to a certain point, it gives us a general idea of where the market was heading during the day. This information can help us decide how to act.
Turning Points, a technique developed by floor traders, help us see where the price is compared to previous market action.
As a definition, a pivot point at a turning point or condition. The same applies to the Forex market is the turning point of a level at which the mood of the market developments "bull" "bear" or vice versa. If the market breaks this level, so the mood is said that a bull market, and is likely to continue to gain ground on the other hand, if the market breaks this level down, the mood is to wear and there are plans to make its way down. At this level, the market expects that certain types of support / resistance have, and if the price of a watershed, a possible rebound is not likely to break.
Pivots work better on very liquid markets, such as the spot market, but they can also be used in other markets.
Pivot Points
In short, the pivot point is a level where the feelings of traders and investors changes are bull or vice versa.
PP Why work?
They work simply because many individual traders and investors use and trust them, as well as bank and institutional traders. It is known that any company that is the turning point is an important measure of strength and weakness of the market.
Calculating pivot points
There are several ways to reach the turning point. The method we have found the most accurate results is calculated by averaging the high-end and bottom of a previous period (or session).
Turning Point (PP) = (High Low Close +) / 3
Consider the following EUR / USD information from the previous session:
Open: 1.2386
High: 1.2474
Low: 1.2376
Close: 1.2458
The PP would be
PP = (1.2474 + 1.2376 + 1.2458) / 3 = 1.2439
What this number tell us?
It simply tells us that when the market is trading 1.2439, Bulls Battle of the pressure of higher prices. And if the market is trading below this 1.2439 the bears win the battle to win lower prices. In both cases, this condition is likely to receive until the next meeting.
Since the foreign exchange market is a market of 24 hours (no close or open every day), there is an eternal struggle to decide the time white, us open, close, top and bottom of each session. In our opinion, should take are the moments that produce more accurate predictions by the open and close at 00:00 GMT, 23:59 GMT clock.
In addition to calculating the PP, there are other support and resistance using the PP as a reference.
Support 1 (S1) = (PP * 2) - H
Resistance 1 (R1) = (PP * 2) - L
Support 2 (S2) = PP - (R1 - S1)
Resistance 2 (R2) = PP + (R1 - S1)
Where H is the top of the previous period and L is the low of the previous period
Continuing with the example above, PP = 1.2439
S1 = (1.2439 * 2) - 1.2474 = 1.2404
R1 = (1.2439 * 2) - 1.2376 = 1.2502
R2 = 1.2439 + (1.2636-1.2537) = 1.2537
S2 = 1.2439 - (1.2636-1.2537) = 1.2537
These values are intended to mark support and resistance for the current session.
In the example above, the PP is based on information from the previous session (previous day). In this way, we could see possible intraday resistance and support levels. But it can also determine the basis of previous weekly or monthly on these levels. Thus, we are able to see the atmosphere for a long time. We can also see that the potential support and resistance offered during the week or month as possible. Calculate the turning point in a weekly or monthly basis is mostly used by traders in the long run, but it can also be used by traders in the short term, it gives us a good idea of the long-term trend.
S1, S2, R1 and R2 ...? An alternative target
As already mentioned, the pivot area is a known technique, and it works simply because many traders and investors use and trust. But what about support from other areas of resistance (S1, S2, R1 and R2) at a level of support or resistance with a mathematical formula for forecasting somewhat subjective. It is difficult to rely on them blindly just because the formula is clear that level. For this reason, we have an alternative for our times, a simple map, but more objectively and effectively.
We calculate the pivot point to as evidence. But our levels of support and resistance are drawn in a different way. We take the previous session high and low, and drag the map to these values today. The same was done with the meeting before the last session. So we have our PP and four higher levels from our table.
LOPS1, down from the previous session.
HOPS1 up from the previous session.
LOPS2, bottom of the last session before the session.
Hops2, high of the session before the last session.
PP, pivot point.
These values tell us the power of the market at any given time. If the market is trading above the PP, then the market is considered to be in an uptrend. If the market is over-or HOPS1 hops2 trade, then the market is in an uptrend, and we have only long positions. If the market is trading below the PP then the market is considered a potential downward trend. If the market is trading below or LOPS1 LOPS2, then the market is in a downtrend, and we have only short trades.
The psychology behind this approach is simple. We know that somehow the market is not to raise / lower the previous session or the session. We do not know the reason and we do not know. We only know the fact: the market reversed at that level. We also know that brokers and investors have memories, they forget the price any more, and the opportunities that the market returns to again (perhaps because for the same reason, and perhaps not), or at least find a support or resistance at these levels.
What is important about his approach is that the support and resistance can be measured objectively, they are not just a level derived from a mathematical formula, and vice versa, the price there, so that these values be more effective.
Our mapping method works on market conditions and trends when conditions on the side. In a market trend, it helps us, the strength of the trend and taking into account the significant levels. In the markets on the side, shows us possible reversal levels.
Turning Points, a technique developed by floor traders, help us see where the price is compared to previous market action.
As a definition, a pivot point at a turning point or condition. The same applies to the Forex market is the turning point of a level at which the mood of the market developments "bull" "bear" or vice versa. If the market breaks this level, so the mood is said that a bull market, and is likely to continue to gain ground on the other hand, if the market breaks this level down, the mood is to wear and there are plans to make its way down. At this level, the market expects that certain types of support / resistance have, and if the price of a watershed, a possible rebound is not likely to break.
Pivots work better on very liquid markets, such as the spot market, but they can also be used in other markets.
Pivot Points
In short, the pivot point is a level where the feelings of traders and investors changes are bull or vice versa.
PP Why work?
They work simply because many individual traders and investors use and trust them, as well as bank and institutional traders. It is known that any company that is the turning point is an important measure of strength and weakness of the market.
Calculating pivot points
There are several ways to reach the turning point. The method we have found the most accurate results is calculated by averaging the high-end and bottom of a previous period (or session).
Turning Point (PP) = (High Low Close +) / 3
Consider the following EUR / USD information from the previous session:
Open: 1.2386
High: 1.2474
Low: 1.2376
Close: 1.2458
The PP would be
PP = (1.2474 + 1.2376 + 1.2458) / 3 = 1.2439
What this number tell us?
It simply tells us that when the market is trading 1.2439, Bulls Battle of the pressure of higher prices. And if the market is trading below this 1.2439 the bears win the battle to win lower prices. In both cases, this condition is likely to receive until the next meeting.
Since the foreign exchange market is a market of 24 hours (no close or open every day), there is an eternal struggle to decide the time white, us open, close, top and bottom of each session. In our opinion, should take are the moments that produce more accurate predictions by the open and close at 00:00 GMT, 23:59 GMT clock.
In addition to calculating the PP, there are other support and resistance using the PP as a reference.
Support 1 (S1) = (PP * 2) - H
Resistance 1 (R1) = (PP * 2) - L
Support 2 (S2) = PP - (R1 - S1)
Resistance 2 (R2) = PP + (R1 - S1)
Where H is the top of the previous period and L is the low of the previous period
Continuing with the example above, PP = 1.2439
S1 = (1.2439 * 2) - 1.2474 = 1.2404
R1 = (1.2439 * 2) - 1.2376 = 1.2502
R2 = 1.2439 + (1.2636-1.2537) = 1.2537
S2 = 1.2439 - (1.2636-1.2537) = 1.2537
These values are intended to mark support and resistance for the current session.
In the example above, the PP is based on information from the previous session (previous day). In this way, we could see possible intraday resistance and support levels. But it can also determine the basis of previous weekly or monthly on these levels. Thus, we are able to see the atmosphere for a long time. We can also see that the potential support and resistance offered during the week or month as possible. Calculate the turning point in a weekly or monthly basis is mostly used by traders in the long run, but it can also be used by traders in the short term, it gives us a good idea of the long-term trend.
S1, S2, R1 and R2 ...? An alternative target
As already mentioned, the pivot area is a known technique, and it works simply because many traders and investors use and trust. But what about support from other areas of resistance (S1, S2, R1 and R2) at a level of support or resistance with a mathematical formula for forecasting somewhat subjective. It is difficult to rely on them blindly just because the formula is clear that level. For this reason, we have an alternative for our times, a simple map, but more objectively and effectively.
We calculate the pivot point to as evidence. But our levels of support and resistance are drawn in a different way. We take the previous session high and low, and drag the map to these values today. The same was done with the meeting before the last session. So we have our PP and four higher levels from our table.
LOPS1, down from the previous session.
HOPS1 up from the previous session.
LOPS2, bottom of the last session before the session.
Hops2, high of the session before the last session.
PP, pivot point.
These values tell us the power of the market at any given time. If the market is trading above the PP, then the market is considered to be in an uptrend. If the market is over-or HOPS1 hops2 trade, then the market is in an uptrend, and we have only long positions. If the market is trading below the PP then the market is considered a potential downward trend. If the market is trading below or LOPS1 LOPS2, then the market is in a downtrend, and we have only short trades.
The psychology behind this approach is simple. We know that somehow the market is not to raise / lower the previous session or the session. We do not know the reason and we do not know. We only know the fact: the market reversed at that level. We also know that brokers and investors have memories, they forget the price any more, and the opportunities that the market returns to again (perhaps because for the same reason, and perhaps not), or at least find a support or resistance at these levels.
What is important about his approach is that the support and resistance can be measured objectively, they are not just a level derived from a mathematical formula, and vice versa, the price there, so that these values be more effective.
Our mapping method works on market conditions and trends when conditions on the side. In a market trend, it helps us, the strength of the trend and taking into account the significant levels. In the markets on the side, shows us possible reversal levels.
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