Pivot Point in PFOREX Assist

Pivot Point in PFOREX Assist

Ninety Third session – PFOREX Assist Tutorial

Welcome back to Forex professional training.

In this session we will review;

• Pivot Point Structure and functions
• The Pivot Point examples in PFOREX Assist

Pivot Point Review

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 is plotted.

The most suitable pivot point levels can be determined in H4 and D1 time frames. There are various pivot points types with different calculations as follows;

Standard Pivot Points

Fibonacci Pivot Points

Denmark Pivot Points

Camarilla Pivot Points

Woodie’s Pivot Points

Based on the applied time-frame and selected symbols, PFOREX Assist use the most suitable type for higher performance.

[adv_thirdsec ]

Pivot Point Strategy

Pivot Divergence/Convergence

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 or Awesome Oscillator. 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 or Awesome Oscillator. 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.

The specifications of this strategy are as follows;

• Market type: Trend & Range market
• Symbols: Entire symbols
• Time-frames: All timeframes
• Elements: Pivot Point, Reversal candlestick pattern, RSI and Stochastic
• Entry Price:
  • Buy Order: Divergence near the 2nd or 3rd support levels
  • Sell Order: Convergence near the 2nd or 3rd resistance levels
• Stop Loss:
  • Buy Order: Below the last candlestick on the reversal spot
  • Sell Order: Over the last candlestick on the reversal spot
• Take Profit:
  • Buy Order: Equal to length of the candlestick, over the entry price
  • Sell Oder: Equal to length of the candlestick, below the entry price
• Confirmations: Hidden Divergence and Classic chart patterns

Now let’s check some examples of this strategy.

On the Brent price chart in M5 time-frame, the support levels are determined in Daily time-frame. The price decreased downward until 3rd level. The last two valleys shows the Convergence just on the 3rd level. The oversold condition by RSI as well as Piercing Line confirms the bullish trend after the reversal spot.

[adv_thirdsec ]

Next example shows EURUSD bullish trend in M5 time frame on which the Pivot levels are specified by the Daily time-frame. After price proceeded toward the 2nd resistance level, a Divergence is detected by RSI on the last two peaks. RSI line crossed the level 70 toward down on the reversal spot to confirm the downward trend.

[adv_thirdsec ]

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.