Sun. Jul 25th, 2021

Fxtriangle | Market analysis | Managed trading

Fxtriangle will make Fx trading look easy.

How to use pivot points to measure Market Sentiment?

1 min read

Pivot points have got another role to play in forex trading, that is, using it to assess market sentiment. Through this you can guess correctly if traders want to buy or sell the pair.

The price dominates the pivot point to the top means the traders are bullish on the pair and you must start buying the pair.

Below, is an example of what happened when the price stayed above the pivot point.

Above, you see that EUR/USD is gapped up and opened above the pivot point. The price rises higher and hovers all the resistance levels.

When the price dominates the pivot point to the bottom, you must start selling the currency pair. If the price is below the pivot point, the signal sentiment will be bearish. The sellers can take over the trading session.

Let us explain further with GBP/USD chart.

In the chart, the price tests the pivot point that held as a resistance level. The pair collapses. The price remains below the pivot point and sells the pair. If forex traders are bearish on a pair, the pair shifts and emerges to the top.

Leave a Reply

Forex trading and any instruments related to Foreign Exchange Market are Speculative and carry substantial risk of loss of either partial equity or the entire deposit amount. Leverage adds up to the risk, before considering to invest in this venture, you should first consider your financial position and may seek the help of an independent financial advisor. FXtriangle dis-recommends the usage of loan instruments to trade in this market as it can hamper financial position. Please do not invest the money that you cannot afford to lose. FXtriangle provides all its services throughout the Globe Excluding (Nigeria, British Virgin Island & the Islamic Republic of Iran) and also provides limited service in some jurisdictions where investment in Overseas markets / Fx Exchanges are prohibited by Law If you are not sure to contact us before using any of our services. FXtriangle acts as an Independent Corporate Financial Advisor and connects you to various overseas exchanges and cannot be held liable for any financial damage occurring through their side. All of our partnered institutions are regulated in various jurisdictions.FXtriangle conducts an independent background check before partnering with any institutions to fulfill your investment objectives smoothly. The usage of our Business name, Logo or any trademark in any financial forum, website, review website, complaint arena, Billboards without our written permission will attract lawsuits.