Pivot Points data provided by IG.
Pivot Points are widely used by day traders to quickly determine where forex market sentiment may change between bullish and bearish. Pivot Points are also commonly used to find likely Support and Resistance levels.
Pivot Points are calculated using the Open, High, Low, and Close prices for the previous period. So, today's Pivot Points use yesterday's Open, High, Low, and Close values. The Trading Day begins and ends at 5pm New York Time. DailyFX shows Classical, Camarilla, and Woodie's Pivot Points.
Sentiment data provided by IG.
Past performance is no indication of future results.
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Daily pivot points forex

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Daily Pivot Points Forex Strategy.
The Daily-Pivot-Points. ex4 indicator can be used to design several trading strategies. The strategy described in this article is one of them. The Daily-Pivot-Points. ex4 indicator can be used as a standalone indicator.
This is an intraday system which seeks to trade off the blue pivot, acting either as a support or resistance, depending on where price is coming from.
MetaTrader4 Indicators: Daily-Pivot-Points. ex4 indicator (default setting). Preferred Time Frame(s): 1-Hour. Recommended Trading Sessions: Any time. Currency Pairs: any.
The indicator plots pivot points which will serve as areas of support and resistance. Of special interest is the blue pivot line. This is the line which will be used as a support or resistance, enabling the trader to buy or sell the currency pair respectively.
Buy Example (click the image for full size):
A long position is initiated when the following is displayed on the chart:
Price candle takes off from the blue pivot line. Usually, the previous candle would have closed above this line, so the key to the trade is to wait for a possible pullback to this line. This is the situation seen in the chart. The breakout candle closes well above the blue pivot, so it would be better to wait for a pullback before the long entry. A more appropriate entry would be a Buy Limit trade, using the price at the blue pivot as the entry price.
≥5-30 pips below the blue pivot line on which trade entry is based.
Exit Strategy/Take Profit for Long Entry:
Knowing when to exit a trade is key and this can be achieved as follows:
The next pivot line above the blue pivot (the yellow pivot) is the 1 st TP point. However, if the price candle’s move is so strong as to break this line and close above it, then the next pivot above becomes the new profit target. This is the situation seen on the chart. If the next pivot target is broken by price action, you can apply a trailing stop to protect profits and follow the trade to the next pivot area.
This time, we look to trade price move downwards from the blue pivot line.
Usually, price would have broken the blue pivot line previously. Allow the price action to pull back to the blue pivot. A more appropriate trade entry in this scenario is a Sell Limit trade. This is set using the blue pivot as the entry price.
Stop Loss for Sell Entry.
≥5-30 pips above the intraday short line.
Exit Strategy/Take Profit for Sell Entry.
The exit strategy on a short position should be to use the pivot lines below th blue pivot.
Naturally, the first pivot line below the blue pivot is the 1 st TP target (TP1). Sometimes, the move may be very strong and will break that pivot. In this chart, the pivot was broken by strong bearish movement, so the next pivot is used as the 2 nd TP target (TP2).
About The Trading Indicator.
This indicator is a simple indicator with boundless opportunities. There are many opportunities to use the daily-pivot-points. ex4 indicator. This strategy, which focussed on just the blue pivot line, is one of them.
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Using Pivot Points In Forex Trading.
Trading requires reference points (support and resistance), which are used to determine when to enter the market, place stops and take profits. However, many beginning traders divert too much attention to technical indicators such as moving average convergence divergence (MACD) and relative strength index (RSI) (to name a few) and fail to identify a point that defines risk. Unknown risk can lead to margin calls, but calculated risk significantly improves the odds of success over the long haul.
One tool that actually provides potential support and resistance and helps minimize risk is the pivot point and its derivatives. In this article, we'll argue why a combination of pivot points and traditional technical tools is far more powerful than technical tools alone and show how this combination can be used effectively in the FX market.
Pivot Points 101.
The pivot point can then be used to calculate estimated support and resistance for the current trading day.
Support 1 = (2 x Pivot Point) – High (previous period)
Resistance 2 = (Pivot Point – Support 1) + Resistance 1.
Resistance 3 = (Pivot Point – Support 2) + Resistance 2.
To get a full understanding of how well pivot points can work, compile statistics for the EUR/USD on how distant each high and low has been from each calculated resistance (R1, R2, R3) and support level (S1, S2, S3).
To do the calculation yourself:
Calculate the pivot points, support levels and resistance levels for x number of days. Subtract the support pivot points from the actual low of the day (Low – S1, Low – S2, Low – S3). Subtract the resistance pivot points from the actual high of the day (High – R1, High – R2, High – R3). Calculate the average for each difference.
The results since the inception of the euro (January 1, 1999, with the first trading day on January 4, 1999):
The actual low is, on average, 1 pip below Support 1 The actual high is, on average, 1 pip below Resistance 1.
Going a step farther, we calculated the number of days that the low was lower than each S1, S2 and S3 and the number of days that the high was higher than the each R1, R2 and R3.
The result: there have been 2,026 trading days since the inception of the euro as of October 12, 2006.
The actual low has been lower than S1 892 times, or 44% of the time The actual high has been higher than R1 853 times, or 42% of the time.
This information is useful to a trader; if you know that the pair slips below S1 44% of the time, you can place a stop below S1 with confidence, understanding that probability is on your side. Additionally, you may want to take profits just below R1 because you know that the high for the day exceeds R1 only 42% of the time. Again, the probabilities are with you.
It is important to understand, however, that theses are probabilities and not certainties. On average, the high is 1 pip below R1 and exceeds R1 42% of the time. This neither means that the high will exceed R1 four days out of the next 10, nor that the high is always going to be 1 pip below R1. The power in this information lies in the fact that you can confidently gauge potential support and resistance ahead of time, have reference points to place stops and limits and, most importantly, limit risk while putting yourself in a position to profit.
Using the Information.
RSI Divergence at Pivot Resistance/Support.
This is typically a high reward-to-risk trade. The risk is well-defined due to the recent high (or low for a buy).The pivot points in the above examples are calculated using weekly data. The above example shows that from August 16 to 17, R1 held as solid resistance (first circle) at 1.2854 and the RSI divergence suggested that the upside was limited. This suggests that there is an opportunity to go short on a break below R1 with a stop at the recent high and a limit at the pivot point, which is now a support:
Sell Short at 1.2853. Stop at the recent high at 1.2885. Limit at the pivot point at 1.2784.
This first trade netted a 69 pip profit with 32 pips of risk. The reward to risk ratio was 2.16.
The next week produced nearly the exact same setup. The week began with a rally to and just above R1 at 1.2908, which was also accompanied by bearish divergence. The short signal is generated on the decline back below R1 at which point we can sell short with a stop at the recent high and a limit at the pivot point (which is now support):
Sell short at 1.2907. Stop at the recent high at 1.2939. Limit at the pivot point at 1.2802.
This trade netted a 105 pip profit with just 32 pips of risk. The reward to risk ratio was 3.28.
The rules for the setup are simple:
1. Identify bearish divergence at the pivot point, either R1, R2 or R3 (most common at R1).
2. When price declines back below the reference point (it could be the pivot point, R1, R2, R3), initiate a short position with a stop at the recent swing high.
3. Place a limit (take profit) order at the next level. If you sold at R2, your first target would be R1. In this case, former resistance becomes support and vice versa.
1. Identify bullish divergence at the pivot point, either S1, S2 or S3 (most common at S1).
2. When price rallies back above the reference point (it could be the pivot point, S1, S2, S3), initiate a long position with a stop at the recent swing low.
3. Place a limit (take profit) order at the next level (if you bought at S2, your first target would be S1 … former support becomes resistance and vice versa).