Options Pivot in PFOREX Assist
Hundred Second session – PFOREX Assist Tutorial
Welcome back to Forex professional training.
In this session we will review;
- Pivot Point options strategy specifications
- The Pivot Options examples in PFOREX Assist
Pivot for Options (Call/Put)
Profound Pivot Point review is available in session 93 as well as detailed educational materials in Education section. Pivot Point strategy is a useful and powerful Day Trading strategy in which the Candlestick of prior day is analyzed to deliver a level that is the average of previous candlestick High, Low and Closing prices. The 3 support lines above of pivot point level and 3 resistance lines below it are plotted.
This reversal strategy delivers a signal when price proceeds toward the 2nd and 3rd Support/Resistance levels of Pivot point. Concurrently a Divergence/Convergence, by RSI or Stochastic, will show the reversal spot near that support/resistance level. The powerful candlestick pattern as well as Overbought/Oversold on the reversal spot confirms the trend direction.
The bullish signal will be generated when price decreases toward the support levels and a Convergence is detected near the 2nd and 3rd levels by RSI. The bullish reversal candlestick pattern confirms the upward direction. If RSI line crosses the levels 30 or Stochastic line passes the level 20 toward top then the bullish trend is confirmed.
The bearish signal will be generated when price increases toward the resistance levels and a Divergence is detected near the 2nd and 3rd levels by RSI. The bearish reversal candlestick pattern confirms the downward direction. If RSI line crosses the levels 70 or Stochastic line passes the level 80 toward bottom then the bearish trend is confirmed.
Now let’s check some examples of this strategy.
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The price trend decreased until it reached the 3rd support line on which a Convergence of the last 2 valleys were detected. The RSI line passed the level 30 toward top and a Bullish Engulfing appeared on the last peak hence upward trend was confirmed.
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On the stock market, the Groupon Incorporation price increased and passed all the resistance levels, however, a Divergence condition was detected in addition to the Falling Wedge pattern to confirm the bearish trend. When RSI line passed the level 70 toward bottom, a Dark Cloud pattern on price chart appeared to specify the reversal spot toward bottom.
Notices
You can download PFOREX Assist app for iOS and other platforms devices to receive these signals instantly, however I have to insist that all the services provided PFOREX are as information, not as suggestion nor advice.
That concludes this session, until next time and another session, take care.