Position Yourself for Success
It is our belief that all Marquis traders should be armed to approach the financial markets with confidence and finesse, which is why we are committed to offering you everything we can to enhance your knowledge base and broaden your toolbox of trading strategies and approaches. A full understanding of the financial markets is vital to the success of all traders, and this is where our resources on the best forex tips and strategies will prove immensely useful. We have identified three key strategies you can adopt to poise yourself to take on any obstacles you may face as a trader.
Pivot points are a widely used technical analysis tool, and they rely on support and resistance levels, which give traders a visual yardstick of pressure points contained in a market. Support levels refer to levels at which a price decrease is persistently rejected. On the other hand, resistance levels refer to levels at which a price increase is persistently rejected. Traders who study support and resistance levels are typically on the lookout for the prospect of purchasing as soon as the support level has been driven against, but not broken through multiple times. There is a tendency for this to take place at the end of a strong up-candle, which tells us that buyers will be looking to drive the price upwards. Traders may also choose to look out for when a support level which has been established prior is pushed through with a strong bullish candle, which creates the same situation of buyers looking to push the price higher.
Here is where the pivot level becomes especially important. Pivot levels refer to a series of support and resistance levels which include a median price level. The medial level is known as the pivot point, with the levels above and beneath it referred to as the support and resistance lines respectively. Utilizing the prior trading sessions’ open, high, low and close to determine these pivot levels offer traders an advantage above those who are only using singular support and resistance levels. Pivot levels allow traders to gauge support and resistance levels on a scale relative to an average price range, which in turn is believed to have a possible correlation to future price moments.