Pivot Points Classic - Trading with optional options
Have you ever heard the saying: "The Bear mood of the market is changing to Bull"? Do you know what it means? The essence of the expression is that after a decrease in the value of the asset (Bear market sentiment) there is an increase in the value of the same asset, that is, its growth (Bull market sentiment). And here's the celebrity financial market itself.
Now let's understand the concept of Pivot Points. They are used in most technical analyzes. And mean points of reversal and resistance. It is at these points that the trends (downward and upward) change each other. And then I'll tell you how to apply these Pew points in trading binary options. This strategy is very simple and profitable. The main thing in all to understand and understand.
1) The first thing to do is to open an economic news calendar! The pivot points are used for short-term currency pair trading. Therefore, you need to make sure that the relevant currency is not expected to be important news. Whatever strategy you use, it will not work if you get economic calendar data. I do not trade half an hour before the news on the relevant currency and half an hour after its release. At this time, the market is not stable: it is preparing for new data, it is reacting violently to it.
2) a technical analysis of the classic pivot points (pivot points).
This strategy is well applied to five-minute options, so I set the scoreboard at a 5-minute interval.
Now we are watching the course on the currency pair on the platform of the broker. Take EUR / USD for example. If at the moment the exchange rate of the currency pair is below the pivot point 1.1259, then you should buy an option to increase. From my experience: I will take the increase if I see that the current rate is below one hundredth of the Pewpoint point, which is not higher than 1, 1190. If the rate is above the Pew point at 1.1259 (I wait until 1.1290 or in general 1,1359), you can safely take the fall. The pivot point is the turning point. If the rate is below it, it will rise, and at this point will turn to decline.
That's all. Agree on anything complicated. If you have a workout demo account, keep track of the change of points (they are not constant for an hour or a day). Then you can safely switch to real bidding. It is better to start with minimal investment.
Now I will show how I will apply this strategy. I use it very often, the percentage of profitability is high! 1) check that there are no important economic calendar news in the near future; 2) I open the platform of my broker; 3) analyze the table with Pivot Points;