Pivot Point Trading MasterClass | Gaurav Khullar | Skillshare
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12 Lessons (1h 4m)
    • 1. Pivot Point Introduction

      6:03
    • 2. What is Pivot Point Analysis?

      3:37
    • 3. Pivot Point Terminology - Central Pivot Level

      1:02
    • 4. Pivot Point Terminology - Resistance levels

      3:01
    • 5. Pivot Point Terminology - Support levels

      2:42
    • 6. Advantages of Pivot Points

      5:12
    • 7. How to calculate Pivot Points?

      10:02
    • 8. How to draw Pivot Points?

      4:28
    • 9. Potential Trading Range

      3:11
    • 10. Pivot Point Confluence

      4:43
    • 11. Pivot Point Confluence Trading Setup

      9:47
    • 12. Pivot Point - EMA Trading Setup

      9:53

About This Class

Learn how to use Pivot Point Levels in your trading.

"A Pivot Point is a technical analysis indicator used to predict future support and resistance levels. along with that it also helps in identifying target levels."

Pivot Point is a leading indicator and this is must in any trader’s toolkit. So if you are missing a leading indicator in your trading arsenal then this course is for you.

This course includes comprehensive material that is required to master Pivot Points confidently and effectively.
You will get an excellent understanding of how Professional Traders use Pivot levels in their trading..

Before diving into the strategy, I will first teach you the essential Pivot Point basics, specially designed to strengthen your knowledge base – to make you understand the intricacies of Pivot Point Levels.
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No matter if you are a trader in Forex, Stock or in any other financial trading market, the concepts and trading strategies discussed in this course will make you a better trader and help you minimize your loss-making trades.
So, Pivot Points can be applied in -

  • Forex Trading

  • Stock Trading & Bond Trading

  • Cryptocurrency Trading

  • Commodity Trading

  • Futures Trading

    And all the other financial markets, where technical analysis can be used to predict the future price movement of certain trading security.

    The main goal of this course is not to just show you some random price action patterns like the other courses do, rather in this course, you will learn how to understand the psychology behind the formation of these levels and how to trade using Pivot Point Levels effectively and efficiently.

    What you will learn in this course-

    1. What is Pivot Point Analysis?

    2. Pivot Point Terminology

    3. Advantages of Pivot Points.

    4. calculate Pivot Points? (With Pivot Point Calculator- Excel Template)

    5. Pivot Point Variations.

    6. Why Pivot Points works?

    7. Price Action at Pivot

    8. The potential Trading range for the range

    9. How to eliminate extra Pivot levels?

    10. Pivot Point Confluence

    11. Pivot Point Confluence Trading Setup

    12. Pivot Point EMA Trading Setup

    13. Pivot Point bounce Trading Setup

    14. Pivot Point Extra Tips and Tricks

    15. Understand the philosophy behind every trade.

Transcripts

1. Pivot Point Introduction: Hello, friends. Welcome to this pivot point rating. Masterclass French. Whenever you see any business channel in the morning before starting off trading session, you must have worked. Technical analyst come up with various support and resistance levels for the trading session. You must have heard them saying that if a particular stock or commodity or currency Pierre breaks our particular level, then next level will be so. Insel. You must be amazed how these technical analysts come up with various levels for the trading session. French. What reviews yourself learned to predict the target travels even before the start off reading for any particular day. French people levels our once US levels, which help you navigate your trade off any particular day. In fact, we work levels are like compass in the ocean. Just see this chart to the left. Its simple price action. No, see this chart of the right, which contains pervert levels. Notice that when price action combines with the right levels, it works on their treasure map. People points are, in fact, like getting Q to the treasure intruding jungle. Most indicators with which traders works are lagging indicators that is their calculated based on present price action. But People Point is a predicting ordered leading indicator. Daughters. These levels are calculated well ahead of price action. So, friends, if you are missing a leading indicator in your trading toolkit, then you should definitely include People Point or Fibonacci or for better results, both in your trading arsenal. This tool provides support and resistance levels valued once before the start off trading session. As you can see in this chart, levels for 27 December were plotted. Bears don't want this 6 December data, so you Arvella wear off support and resistance levels for 27 December as soon as trading for 26 December is closed French. Some people reject people points altogether, but venue see charts like these and Price respecting the paper points, then French learning people points do make sense. When so many traders and investors use paper points, it becomes a self fulfilling prophecy. Most new traders or investors are not family or with people point analysis. Many inexperienced readers also face hard time incorporating this technique into their training toolkit because over time that it takes to master. But please know that professionals look at this analysis all the time and social you. So if professional traders are looking at these levels all the time, why wouldn't you want to look at them as well? Well, tool that can help you in taking better trading decisions and that can multiply. Your profits must be in your trading arsenal. If you already know a little bit about people points, then discourse will bust many a film. It's by way the concepts that president and simple yet effective manner, Friends of difference between Successful and North. So successful traders is determined by word to do with the price data. The board good price, dead, tired and all the day. But what matters is how far they process the data and then how they apply or execute that knowledge in life markets. What points can give you that much needed image or your fellow Dido's? So what? You will learn in this course, Lexie, the curriculum in detail. We will start off learning what people point analysis is in this morning, you will learn what exactly is this trading methodology? Actually, London terms used in people point analysis, Then you will Lunda. I'd want ages off using pivot points in this model you will learn many more reasons why Pivot point is an essential dole in your trading screen. Once you learned a basic support, people points, you will dunland how these levels are calculated in this model. You will also learn different variations, which traders used to calculate pivot points. After this Ueland. Why pivot point trading works? Then you will learn how price action works around people levels. This is an important topic, and that isn't why most traders awesome money using People Point is that they don't understand the price action when price comes close to these levels, then you will learn how to one potential trading range for any trading session. This morning we will solve a classic treatise problem. Off analysis, paralysis, Morse, traitors over analyze data, and here we will learn how to filter out excessive permission. Then you will learn another important concept in trading, that is confluence. This is one topic. I focus a lot conference health in generating high probability, successful trading setups and juvenile on how you can apply conference toe pivot points to generate successful and profitable trading setups. After this, we will see another trading set up that this people point bounce training set up. This is basically a reversal breeding set up. After this, we will look at another trading set up. This is using moving averages. Lastly, I will wind up this course with some tips and tricks which you can apply using paper points and improve your trading and reduce your loss making trades. So, friends, I welcome you also this paper point trading masterclass where you've inland pivot point rating from 0 to 1 and thereby joined the league off successful professional traders. 2. What is Pivot Point Analysis?: Hello, friends. Welcome to this opening lecture. In this lecture, you will understand what people point analysis is, so let's start French Pivot point analysis is a famous price for costing technique used by day position and flow traders. They used this technique to find important support and resistance levels for today, which are derived from previous day's trading range. These levels are so popular among professional traders and institutions that you will see price respecting these levels every now and then. As you saw him intro to Discourse. People Point is a leading indicator rather than lagging. Unlike most other indicators and with longer time frames at Crecy off, these levels tend to increase drastically. People point analysis basically incorporates three important elements that is, the high, the low and the clothes off a given trading session and then use mathematical formula. Using this high, low and close to deter mined the potential trading ridge as well as potential support and resistance levels for next trading session. This helps the trailer to get clear target levels while trading or I should say, right at the start of trading session. As you can see in this chart, date off well it will be used to calculate paper points for trading session of 13. Another point to notice, since paper for analysis using high, low and close does it captures collective behavior off market participants. Hi is the reflection off all those participants who think that they are missing an opportunity. Does that enter the market at that point, just because of their greed by law for trading session reflects all those participants hooting that market may fall more and other. It's better to exit the treats. Lastly, close off a training session is the point we're both bulls and beer settled on. Does all these levels are very important points as D shows different psychologies and market interpretation off different traders. So people in front analysis captures both greed and fear off market participants. So people points are the key levels off any trading session. There are seven major and many additional pivot levels, which you are going to learn later in this course. Let us now see broad set up off people for analysis. Once you add a basic people point indicator, you will see a set up like this. The central black line is the period line, which is basically average off high, low and close. And as you do have mutual market sentiment. Or you can see that market is that equilibrium at this level, Then we have three resistance levels. That is, the distance lines are one are doing artery below the people. You will see three support lines. That is S one s two and s three. No, that all these levels are calculated based on previous days data. So this is the basic People point analysis set up in next lecture. We will learn some basic people point trading terms, and we'll look into details, off paper support and resistance. 3. Pivot Point Terminology - Central Pivot Level: Hello, friends. Welcome to this lecture. In this lecture we will understand people point Ornithology The last lecture you saw glimpse off people Point tool on the chart on as you vaccine We would point pool consist off central pivot line. Then there are support and resistance levels. Let us understand each of these terms in the deal. The first building block a central pivot level in layman language. This point off equilibrium of the market. Or you can say it is a level at which the current market direction for the day changes. So the market trading above central pivot level is seen as bullish doctors. Buyers are in control, whereas the market rating below the period level is seen as bearish, that is, sellers are in control. 4. Pivot Point Terminology - Resistance levels: welcome to this new lecture. In this lecture, we will learn about second building block off the pivot point rating that is resistance. As the name suggests, the resistance is something that stopped the price from rising. Further resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic says that as the price it wants us towards the distance sellers become more inclined to sell and buyers become less inclined to buy by the time price reaches the resistance level. It is believed that supply will overcome DEMAR and disprove since the price from rising above a distance. As you can see in this, you know, USD chart. Nor does this zone in the blue rectangle. No Dad Price tried to break the zone first at this point then at this point also these points, but could not beg his own do it hard of false breakout at some points. But price again went back below the zone Hands bull stride everybody toe break This blue zone called resistance but failed. Has this level acted like a resistance for Euro USD currency pair for this particular trading session. Let's see some other properties of resistance as you gonna blow. The level of resistance is always above the current market price. So for this training session, price remains below the resistance level are one off 1.137534 Hold reading session. Also moved that other distance always acts as a trigger to sell. So whenever the price touches or enter the resistance zone, there is heavy selling which leads toe again. Drop in price. As you can see in this example also whenever price test or entered the zone around are one . There is heavy selling and price again fell back below the zone around are one. Finally, the session closes between central pivot and are one another point Don't know this is once our assistance is broken Another resistance level will have to be established at a higher level. As you can see in this, you know, USD chart designed in the blue is the zone around resistance level are one which was broken at this point. And as this new resistance level of Bartel was formed once old resistance off, our one was broken. I always emphasize not to you support and the distances as lines, but always have some before around these lines, and us used these as zooms to get high probability traits. 5. Pivot Point Terminology - Support levels: welcome to this new lecture in this lecture villain. The third pillar of people point rating Gotta support France. Having learned about resistance, understanding the support level should be quite simple. Law. Oppose it to the distance. The support is something that prevents the price from falling for the supported the price level at which the demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and got cheaper, buyers become more inclined to buy and sellers become less inclined to sell. By the time the price reaches the support level, It is believed that demand will overcome supply, and this prevents a price from falling. Bill Ausubel Just see in this example off USD Canadian dollars on a daily chart, notice the bone shown in blue. Just see how prices facing difficulty in falling below the support level shown in blue at these points that traders expect maximum the one hence, Whenever the price falls to the support level, it is likely to bounce back. Hence, you can see when the price falls to first. At this point, it again bounces back. Similarly priced bounces back from all these points. Let us now see some other features off. Support fosters. The level of support is always below the current market price. As you can see in this USD Kennedy and Dollar example, price always moves above the support level as one still here very finally had a breakout below us one. Next is the support often acts as a trigger to buy. This is also visible at the points pointed with arrows. Whenever price jumped or entered the support zone, there is heavy buying which eventually triggers a jump in price. Last but not the least. Once support is broken, another support level will have to established at a lower level. As we learned, supports and distances are not forever. They are broken from time to time. Similarly, when a support is broken, another support its form. Let us against the example of Euro USD. The all support was broken at this point and fell freely. Deal here very took news. Abort hope the concept up people support and resistance is clear to you. 6. Advantages of Pivot Points: welcome to this new lecture. Hope you are no clear with basics or pivot points. Let's not see what are the advantages off people forms and why these are most in your trading. Toolkit Fostered wandered off using people points is that it works in almost every market beat equity, forex, commodity or even Cryptocurrency. You will find pivot points being respected almost everywhere. The reason is price action, which is a collective behavior, doesn't markets which have significant volume, and participants will respect favored points more often. Pivot point analysis is, in fact, a robust, dime tested and, best of all testable form off market analysis. You should know that people points work very well in acquired or regular markets. But in the case off news driven markets, for example, even extreme resistance or support levels won't last long. One of the main man IFOR's off using pivot Point levels is that they help you to determine vent winter and Vento exit market positions. Does this mix things lot easier and simpler for traders, friends in life market, it's always better to jump with predetermined strategy, and pivot points give you exactly that. Favorite points give you exact levels and save you from taking decisions based on emotions . Does with pivot points. You are sure very to enter vent winter and were to exit the trade Does keeping emotion at bay while trading Now this one we saw during in total, the scores people Point analysis is a famous technique that is used at the price forecasting matter. But what winds are leading indicator? This means that readers can God future market turning points Vaillant ones rather than lagging indicators, unlike most off today's popular technical indicators that are based on previous price action. Pivot points, in fact, is trailers at once target levels that in many cases turn out to be actual highs and lows of the day. Next is pivot point provides trend of the market. The central pivot level, which is a middle line and the level of which everything is calculated, is a primary focus off every trailer during training sessions. If prices trading above the pivot point, market sentiment is generally considered as bullish for today, and if the price is trending below people point, market sentiment is generally considered bearish. Also note as long as no significant news even take space market generally respects these levels and trades between these levels only another and one day you'll be would. Point is, favorite points helps to eliminate and potentially solve the problem off trading on emotions friends. As you know, the technical analysis is basically an art and not a science. Had this been a science, then algorithmic traders would have never lost money. But in this course, using pivot Point analysis, along with discretionary use off candlestick patterns and other tools, vivid travel a profitable trading setups, as you will see later in this course. Apart from using pivot point levels as entry or exit, they are also used to project support and resistance levels or actual highs or lows. Off trading session. French wiki and monthly pivot levels offered access strong futures of Borden resistance levels, and you will let us see in the scores how to use weekly and monthly levels in our day to day trading setups. Friends. The reason private levels stands ahead off Fibonacci levels is that there is no subjectivity in calculating pervert levels. Info Naci. Many traders are confused, which swing low or swing high to select or infirm Natche levels. Different readers run different food naci levels and does get different support and resistance levels. But with pivots, no matter where you are trading or toe which country you belong, there will be very less fluctuation in calculation, off support and resistance levels. The spirits are very good at reflecting short on price movement as they take in Togo on both short on mortality and create a psychology. Another advantage which pivot levels have is that they're helping doing potential trading range off the day most off under trading is confined between as to when our toe market really reach est rien artery. But van it reaches on day off New Zealand market Very good profits can be made which we will see later in the scores. 7. How to calculate Pivot Points?: welcome to this new lecture. In this lecture we will see how these levels are calculated And what are some variations that to you can use in your preferred point calculations. So let's start as we already seen. Pivot point levels are derived from previous training sessions. High, low and close. Does every do trading there? We will have new levels. We would want analysis provides traders with five major levels. There is central pivot point at the middle above that we have resistance R one and R two below. Central people point level. We have support s one and s two. Now, as a trader visual stick toe. These level only as most price action happens around these five pivot points only now, central pivot point is basically the average of previous trading sessions high, low and close. That is for calculating central pivot point. Simply air high, low and close off last trading session, and then divide this somebody three then to calculate second resistance, that is arto simply add high off last trading session toe already calculated river and then , sir, prayer last reading sessions low from there does to calculate Arto Just use the relation pivot plus high minus low. Then to complete our one multiply parrot with two and then subtract low from that does to calculate our one. Just use the relation R one equals pivot multiplied by two minus law. Now let's see how to calculate first support level that is, as one to calculate first support level, simply multiply pervert by two and then subtract high from that does to calculate as one just use the relation as one equals pervert multiplied by two minus high. Lastly, to calculate as toe simply subtract high off last session from the pivot and then add lof previous trading session does to calculate as toe just use the relation as two equals pivot minus high plus low. Let's do a practical example toe. Understand all these relations now. This is the daily candle off 17 December 2018 for Euro USD currency pair, and from this, we can find open, high, low and close for 17th December training session. Now this trading session opened there. Open equals 1.13050 made high off 1.135 Double seven made low off 1.13 Double 01 and finally closed at 1.13470 So once the session is closed and we have all this data, we can find the period levels for next training session. That is 18 December 2018. Like this friends villain, period point equals High plus law, plus close divided by three. So we will just put the values or previous sessions high, low and close. Daughters $1.135.7 plus 1.13 double +01 plus 1.13470 And hold off. This divided by three Solving this bigger one point wonderful 350 Does center pivot level for 18 December will be 1.1 Double 350 Now let's calculate second resistance level are too . We already learned that our two is calculated as R two equals period plus high minus law. We will substitute pivot value we calculated about and thus we get R two equals 1.1 double 350 plus 1.135 double seven miners 1.13 double 01 Solving this we finally get our two equals 1.13 96. Let's now calculate are one we know our money calls spirit multiplied by two minus law. Now let's substitute all these values from mobile vigor. R one equals 1.1 double 350 multiplied by two miners, 1.13 Double 01 Solving this we finally get r one equals 1.136 Double line. Let's now calculate as one we know as one equals favorite, multiplied by two miles high after substituting vigor. 1.1 double 350 multiplied by two miners, 1.135 Double seven. Solving this we get as one equals 1.13123 Lastly, let's Colcord support level as to we know as two equals. Pivot minus high plus low After substituting. Values are pivot high and low. V get 1.1 Double 350 miners 1.135 Double seven plus 1.13 Double +01 So we finally got 1.12 Double 74 Friends off. All these calculations are clear to you. If you still have any doubt, feel free to ask in Q. Any so once all the points are calculated. We knew tojust brought all these rebels on the chart. That is for December 18 2018. The levels will be shown like this with central pivot level shown in black at the middle and first and second resistance levels above the sandal period level and first and second resistance levels below the central period level like this. No offense. Some traders add 1/3 level to their pivot point calculations to trade extreme market swings . That happens when there is any major New Zealand. French foreign markets trance toe have double blow from New Zealand's notice days. So far from any news from either of the two countries. Off the Trans appear I am myself used these levels to create days off extreme mortality. Our trees, calculated as hi plus two multiplied wire preferred minus law. Similarly, as trees calculated as as three equals low, minus two multiplied by high minus spirit Assad, these levels are tested on days off, extremely modality. Otherwise, market generally trade between our two winners, too friends. If you are scared with all these calculations in war, then you don't need to worry for calculations part as most off these pivot point levels will be provided by your charting platform free off course. But as it reader, you should know from where these levels are coming and what's the logic behind high, low and close off a trading session? I also know that the form last four R one R two R three and s one as to an S three all include the pivot value. That is why the central pivot level is crucial for overall pivot point formula. Therefore, you should be very careful when calculating the central pivot level. After all, if you incorrectly calculated the paper value, your remaining calculations will be wrong as well. No friends, calculations and pivot points were you Still here? Are all daily pivot levels. That is rivers using high, low and close off last trading session to calculate president days levels moving forward. There are two other types of words which are used by traders, and these are vehicle pivot levels and monthly pivot levels. The formula used to calculate weekly and monthly periods are same as that off daily papers . The defense is that in case off vaguely people will use weekly, high, low and close violin case off monthly pivots views monthly, high, low and close. And it's needless to say that vehicle pivot levels last for one full week and monthly pivot levels last for one full month. For example, monthly period levels for February 2019 is calculated based on monthly, high, low and close for January 2019 and nor that these levels will love for full month off February 2090. What the concept off daily, weekly and monthly pivots is clear to you now. Let's see vision later to use when using charts off different time frames. So when you are using charts still 15 minutes off timeframe. Daughters 15 10 and 15 minutes Favorite points will use previous days. High, low and close. Similarly. Period points for 30 and 60 minutes. Charts use previous weeks. High, low and close and pivot points for daily charts Use previous months. High, low and close. Also not since for access. 24,000 Market Most for extra. Does use New York closing time as previous days close to calculate pivot points 8. How to draw Pivot Points?: Hello, friends in this lecture villain. How to draw the paper point levels on its are practically friends. There are many free charting platforms available, which you can use student preferred point levels. I am currently using free charting software off daily FX, but the settings are pretty much same in every charting black form. So at what point levels to your chart, just click here on the indicator, which opens a list of indicators. Now just type pivot here and select favorite points standard. Once you click, you will get pivot points plotted on the charts like this. But as you can see, there are fourth and fifth levels also on the color. Also off. All these levels are same, which may cause confusion while training does. We will do some modifications in this default factor. First is we will remove fourth and fifth levels as market really test these levels does. It's better to remove all the excess information and save ourselves from analysis paralysis . So just go to the settings here and then simply inject these two check boxes in the style option. Now, as you can see in the background, both as for our four and as far are five have been removed successfully. The second modification, which we will do is is changing the color off levels I prefer as one R one has same color similarly, as to our to our same color and finally as three artery also in same color, sort of both these basic modifications. Just click on the settings here No one in this dialog box open in the input tab. You will see type option bite if all the people want selected are traditional which we learned till here. But as you will learn later in the scores, there are many other types of people points also like Fibonacci camera and many others so you can select any of the people point. As for your choice, I am selected classic from this option. Another field you can see is number of pivots back now biting for this values 15. That means the pivot points will be plotted till 15 years back. Starting from today, this option is in fact, pretty useful venue. Are back testing now to change the color just Goto style town. And here you can see all the colors by default are brown not to change the color. Just click over discolor box and then select the color of your choice. Now I prefer dark blue for level one off support and resistance being for level two off support in the distance and dark green four. Level three off support and resistance and for and for central people Point, I prefer black. Now just click OK and you will see the colors off. All the levels changed now Another J I. Preference increasing the thickness off these levels and thus giving clear picture of price action happening on life job. So to change the thickness, just go back to setting again and then increase over it. As for your choice, I just prefer to increase the thickness of it like this. Now you can see all the levels clearly on the chart. That is central pivot point is shown by black line, and first support and resistance are shown by blue, and second support and assistance are shown Weapons no, but changing the colors and increasing the word. This gives a better view when you are trading. Friends hope all these settings for pivot points are clear to you. 10. Potential Trading Range: welcome to this new lecture friends during our class on advantages off paper points villain that an important and wanted off using pivot points is that it helps traitors in deter mining potential trading range. So in this lecture villain, how to find a potential trading range by filtering out access information on our chart? Friends are trading charts are already overloaded with information, most often along with candlesticks. You will have volume are moving average and one or two indicators now with that on the chart. If you had someone pivot point levels to let that may create a really confusing picture as a trader, not a trading practice, which I teach is based on simplicity without creating much confusion on the charts. The simpler the charters batter trading decision trader will take by filtering out access levels are Trader has clear trading rage, which he can use for taking entry or setting targets. So is there a way to filter out some levels? Yes, there is blood. Asi ho So friends, as we saw in the lecture on price section around period levels, an extreme British market price really touches pivot resistance levels. And when bears are really in control The central pivot level access. Strong support level. Just see this 15 minute chart of Euro USD. Here you can see the market is in downtrend from here. Toby, just notice how central pivot level for all these training sessions during bear market acts as a strong resistance level and price really touches resistance level R. One R two An artery doesn't most off these sessions if it is acting as sessions high and price just holes between central people level and support artery does during training sessions. When Juno that beers are in control, you can easily remove pivot resistance levels are one arto an artery from the pivot point, and you can easily predict that the range of the market will be mostly between central people and support level s tree data is price. Will most probably Horan this really only and we can set our entry and exits based on this ridge. As you can see, we have easily removed access pivot levels from our tool and thereby narrowing our trading range on this will help you in taking better trading decisions during bear market. Similarly, during bullish market, you can easily remove as one as two and as three pervert levels from your analysis. Thus trading reagent bullish market is generally between artery and central paper, nor that you should only apply this wilder vend you are confident about the market trend does. I would not recommend this for new traders, but traders who are in the market for some time now can use this filter in there period point analysis to generate better entry and exit levels. 11. Pivot Point Confluence: well conference friends. If you are trading for some time, then you know this fact that nothing will ever be conformed in training, that things will forever remain close to a game of probability. No one is ever sure intriguing because off this reason, only we have a very important concept in price action. Creating that is confluence. If you are already taken my previous price action or people not you trading cools, then you must be family with this concept. But if you have joined this family for the first time, then let's learn more about what is conference and why it's considered so important in price action training in simple terms, when two or more levels off Momenta Building come together at a certain point on the chart that is called conference, did you ever notice meeting off two tribute trees off forever? After confluence, the river becomes more grand and gains more momentum in the directional flow. Similarly, we implement conference intriguing. We take as many signals as possible or particular price action zone tells, and then take our buy or sell decisions. Let's understand this concept in depth France entry in the merging off tour more things prove highly beneficial. Often that can mean the difference between a loss making trade and a profit making trade. Just imagine you are working at a particular price action zone. Say this is our price action zone, and we want to check whether the price will make reversal at this point or not. Now you got three signals which were pointing towards reversal of prices. So what will be the chances off price reversal? Indeed, it's high chance that price will make a reversal. Yes, markets are unpredictable, but with confluences your probity off, increasing successful trades rises sharply. We will use this contraband strategy in our pivot point con frustrating set up. So please understand this concept off Contreras Very well. France. Please know that the longer the time frame greater where the data carries so monthly pivot levels carries greater weight it than weekly and vehicle P words carry greater weight ege none daily papers. Therefore, it should be noted that longer term numbers should be watched carefully for clues not only for trading opportunities to take positions, but also had a warning that the current trend could be or and potentially yours. Just see this 15 minutes. Chart of EUR USD notice How monthly perfect level off Our one is acting at a strong resistance here. Market reverses at this particular level and currency. Pierre moves down quickly in Pivot Point conference trading set up later in the school. Levitate this basic concept off training to all to other different level and see how we can generate very high probability. Profitable trading setups. Using Pivot Point Conference, France Pivot levels off different time frames went lineup together, create some very high probability reversal zones just in this example. Here, Deleuze tow vehicle, AEA's to and monthly s one all converge in a compact soon and does when price approaches this zone. There is very high probability of reversal. You should at least get to conferencing levels to generate high probability reversal zones . But more private numbers that converts the greater other chances off reversal like to see a practical example. As you can see in this 15 minutes, you tell us the chart vaguely pivot as one is running very close toe daily pivot as to. Does this create very strong support on and just see here where the currency pair fails to break the support zone created by vehicle Yes, one at 1.13070 and daily as to where? 1.13092 Let us see another example here. Also, you can see conference off to pivot levels weekly as one end Delia's toe. You can observe that the currency pair bounced immediately as it come closer toe. This high probability reversals on friends hope the concept or conferences clear to you. In next lecture, we will learn the training set up in which we will apply all these concepts which we learned in this lecture. 12. Pivot Point Confluence Trading Setup: welcome to illustrating set up in this lecture, we will implement the conference concept to develop high probability trading set up so that stock. So let's first lander set approves. We will use classic people points for trading. This set up for the set up. Just installed three period point levels off different time frames matters one set off a word point levels off daily timeframe. Second off vaguely timeframe and third off monthly timeframe and all in one chart. Then second step you need to sport conference off two or three people point levels as we see in last lecture, confluence off two or three support levels or resistance levels. Create high probability reversal creating set up, then check if the conferencing levels are formed at meter, historical support or resistance level. If these levels are formed at major historical support or resistance level, then this ax to the conference or you can see it to the probability off reversal. Not a country. We will use tomb or conferencing factors. So first, check the candlestick pattern formed at the zone off conference off pervert levels. If there is conference off support private levels, then you should go for bullish candlestick pattern and if there is Conference of Resistance private levels then go for bearish candlestick pattern. Lastly, we will just get confirmation from stochastic. So if they are conferencing, support private levels, then stochastic in oversold region and angling up adds to the conference off reversal. Similarly, if there are conferencing resistance levels, then stochastic in over what region and angling downwards adds on to the conference of real Person. Now you can add more confluences like Fukamachi levels, volume analysis or chart patterns, and finally, dig country. As we learned with Confluence, there is friend in numbers. The more conferencing factors you get, the greater the chances off reversal the targeted generally next we would level. It doesn't matter with people travel out off monthly, weekly or daily. You choose, but choose the level with good history. War I journalists stop loss about are below people support or assistance on which is creativity conference or pervert levels friends. If you are feeling confused with any off the step, that strategy will be crystal clear. Once we will see practical examples, he had to start with examples. This is 15 minutes. USD Kennedy on dollar chart. Here you can see Weekly are one and deal er one converging around the zone Monthly central pivot level is also running close to both these levels. Now this creates a very high probability reversal. Doom does. When price approaches this zone, we should look out for reversal. Trading signals does. As soon as price approaches this region, we will see the candlestick pattern. Let's go into the candlestick pattern here and mood is this First candle rituals indecision in the monkey. Now, after this, you get to back to back or that candles, which confirms that market sentiments are indeed turning bearish. Now let's check of the Pivot Levels Conference is formed at media historical resistance level. Now, if you see historically, the zone is indeed form that major historical resistance level and does. This also adds to the conference off reversal. So, as you can see in this strange set up, we got three conference in factors. First is three period levels conferencing. Don't you guard beers candlestick pattern. Lastly, you border. The corn first level was formed at major historical resistance level. Does If one is pure price action trader, they can take the trade was getting the Candlestick confirmation that is here. The target will be next week. What level that is this? As you can see, the target was comfortably at you. No doubt you can also use stochastic toe. Add on the reversal probability. Please know that just one indicator, like stochastic ethnicity or are size enough don't have many indicators. I believe in price action. More and thus using the conferencing tools mentioned in this set up are more than enough to generate high probability trading setups. Let's see another example. This is 15 nights G B PGP, white shark and no decision where daily arto and vehicle er one are conferencing. Also, your decision where daily as toe enviously as to where conferencing to form high price action zones. This is in fact creating too high probability trading setups. Let us discuss each of these sort of one by one. So if you focus at this first set up, we get first contract by way of converting resistance people levels. Then let's see the candlestick pattern, if you carefully also, we're getting three red candles Now. This pattern is commonly referred to ask three black growth friends and this part on the second red candle should be bigger than the first candle's body and shoot close at or very near to its law. The third red candle should be off the same size or larger than the second candle or no week or pail at all. Finally, there should be no gaps between the candles. He's candle opens within the body off the preceding candle. So friends, when using this pattern, forming after an upturn, this indicates that the reversal isn't work and beers are in full control. We also got one more confluence by were stochastic, which was in the old board region. Does all these factors. All the weather indicates that there is very high poverty of reversal in downward direction . Does Vidic entry it Confirmation that is here and we'll take target at this pivot level rather than previous private level, which is providing good resto reward issue. The conservative traders made it disparate level as target and takes more profit and get out of the trade. But ideally, these levels are so strong that you can go with good ways to reward issue. Our stop loss, as discussed before, will be this level just above the period level converging zone. Our target was hit here and this was a good, profitable trade. Let's now three. This second trade set up in second period, set up the first conference. We got his convergence off to support paperwork levels. That is vaguely support level s one and daily support level. Esto next three letter sex talk asked it. Now you can see stochastic is an oversold region and this indicates that reversal can take place any time. Then we wait for a bullish candlestick pattern to form so that we can take country. We got our bullish really attract candlestick pattern here, which is a good reversal bullish pattern. No conservative traders can take very next period level as target objective. Why aggressive traders must go with good, restore your issue and should target dispute level at that target objective. But as you can see, the currency pair rewards just before hitting the target level. But still, the trade was profitable even for aggressive traders. Hold example is clear. Let's your last example of this lecture in this 15 minute chart of us talk Apple. Please know this zone here nor that hair three pivots support levels are converging to form a compact on two levels are almost overlapping each other here, Daily s one, at 1 92.3 is converging with vehicle as to at 1 92 131 and monthly has to at 1 92 110 This act up in the gears that there is very high probability of reversal once price nears this wrong support from no formation off bullish outside bar candlestick pattern adds on to the conference now bullish outside were candlestick pattern consist off two candles. The second candle is a bullish candle which has a higher high and a low load on the first candle. Now let's check stochastic to get final confirmation So when we see the stochastic, it's an or sore region and does we get our final confirmation toe? Enter into the tree We will take and tree at this level at open off this red candle with stop loss slightly below the zone off converging levels, our target will be dearly central. Pivot level doesn't district our target Is that you pretty easily that this was a profitable tree France hold the pivot point conference training set up is clear to you. This set up clearly has anointed or algorithmic and other training methods 13. Pivot Point - EMA Trading Setup: Welcome to this new trading set up in this Lecter. We will see moving average based Pivot Point trading set up. Let us foresee the story behind this training set up. This strategy is build on Hillary. Not if Price opens above pivot point that market sentiment is bullets and if price opens below pivot point and market sentiment is bearish. So in bullish market we will go long and in British market we will go short. But friends, if you prayed with this your concept of people points, then you can see lots off all streets because lots off algorithmic trading is being done based on these levels. A great rating system is not a computer or algorithm, but the trader who can make calculated decisions based on the data. So today we need confirmatory tool, which uses human logic to counter algorithmic trading happening in today's markets. Soto counter algorithmic trading. You need to add human element to your trades. Doesn't are set up. We will act to exponential moving averages off five and 26 peter 5 p.m. A. Shows the wiki trend. Why can't this expedient e m give the month Children later in this training set up, you will see how vivid use moving Average analysis toe Take out Rich. So first of all, let's see the tools needed in this training set up. We need five or 10 minutes Normal Candlestick Chart Friends This strategy works best in 15 minutes time frame. Then we will have five and 26 Peter Exponential moving averages as villain earlier. Five period e m a. Health In observing the vehicle trend. Welcome this Xperia e m health in determination, off monthly trend of the market At last we will add classic pivot points were daily timeframe. Now let us see the trading set of rules. We will discuss rules for long prayed and rule for shorting are just rivers. If you feel any confusion, kindly pulls your credit in Cuban E now first thing, you should off service price must be off. Central people point then look at exponential moving averages shorter. Five period e m. A. Should be above longer 26 period e m and trending up also in order Distance or gap between PMS should be large. Now you will ask what is definition off large here? Is there any mathematical formal? Our tool French. Here comes the analytical part in this training set up. Just analyze the moving averages. They should be maintaining sufficient gap between them. Vendor Trading session starts If you are conservative Trader Dan Select rating on doors. There's only were distances large and both moving out. What's trending up? Violence. You are aggressive trader. Then you can take the trails. We'd even average gap between the moving averages. You will understand more on this point when you will see some practical examples later in this lecture and next up. Do check the previous trend. The asset class should be in operation once all the perimeter that checked, we are ready to pigged entry a country at close off first candle or start off second candle . Other day, the target is generally it next hired private level off R one or R two or R three, whichever is very next. No aggressive traders can cash on more profits and can exit when five period Iemma changes direction. Then comes stop loss, so the set up works very well. I generally put stop loss at immediately previous lower pivot level, while aggressive traders cancer, their stop loss just below the people level No, here is the checklist when you should not take the treats. So first of all, we're taking trades when distance between moving averages is very less also a war taking trades when there is a large gap up or gabbed on opening. Lastly, also war trade when both 500 this Xperia ear me are trending downwards. This means even though the market has opened about people level and there is good gap between moving averages. But if they're trending now, you need to stay away from the market. So, friends, this is all about the trading rule for this set up. As I said before, the rules for short rates are just reverse off other points. Those weren't new. Intriguing legacy. What a gap up our gabbed on opening is in short, friends, gaps appear do the sharp rise or fall in price off the script when there is no occurance of trading activity. Some of the major reasons for gap creation are fosters some positive or negative news released related to the script. Second is some change in traders views overnight. Another factor is on almost went off financial reserves after close off previous session in case off stocks and many other factors. Now France there are with nearly four Thai food gaps, fosters full gap up opening second is full gap down opening. Then there are partial gap up or gabbed on opening also but with reference to dis trading set up, we are focused only on full Gap up or Gabon openings only in full gap up. Opening the price off financial instrument opens higher than the previous day's high place . Why didn't full gabbed on opening price off? Financial instrument opens Lord on the previous training sessions. Low price. No doubt. On 6 July 2018 Market made a high of 1 88.43 Then on next training session, that is 9 July 2018 Market opened at 1 89.5 This is Clark Gap, a building now. Jesse Candle Off Dance July to Holland. 18. This day Market made a low of 1 90.1 it and then on Really, I want to. July 2018 Market opened at 1 88 150 Does market open lower than previous days? Look, this is called gabbed on opening hold upon several gap up and gapped down was clear. So when you see market making Gabba or gap down, then avoid using this training set up, let's come back to our training set up and start with some practical examples. This is 15 minutes chart of US talk and media. Nor that's talk opens above central pillar level. Does indicating going long on this day? Next, we look at the two exponential moving averages. Hear about 506 period moving averages are having good gap between them. When which of the previous trend we saw, it was also an up train does. We can proceed with the street and enter at this level at close off 1st 15 minute candle of the day with target at our one that is, at this level, stop loss is centered central people level that is here for council radio operator and with load on this level for aggressive traitors. But know that market in this case doesn't move as per our expectations and heard the center pivot level here. The district was profitable only for aggressive traitors whose target was village. Let's see another example. This is 15 with a chart off US dollar Canadian dollar. We see that the previous trend was Afghan and currency pair opened above the central people level and there was no gap up or gabbed on opening. Now we look at the moving averages and we saw that both moving averages are trending up and this large gap between the two does. We can proceed with the trade. We took entry at around this level that is at close off 1st 15 minutes. Candle with stop loss, accidental pivot level that is here and targeted are one that is this level. As we see the target was valid for both conservative as well as aggressive traders. Let us see another example. This is 15 minute chart of us talk Amazon. No doubt this talk is in previous downtrend and when the trading session begins, the opening is below. The central paper doesn't even go a short And this trading session when we always off the moving averages, these are large gap between the two when both Anglin downwards. This indicates that we can proceed with the street. Finally, Riddick, Andrea, start off second candle Other day that is here. Good target. That s one. And stop laws that Sandra Bullock level. Finally, our target was hit. Here does. This was a good, profitable trade. Let us see a final example in this training set up. This is 15 minutes chart off currency pair, Australian dollar New Zealand dollar videos over the previous friend was downtrend and that trading sessions started below the central people travel does it will go short on Thursday . We also observed that there was good gap between the two moving averages and the start of the session. We finally took entry at this level. That is that start off second candle of the day. Now our target should be s one. That is this level and stop loss will be central people travel. That is this level. Finally, our target hurts here. Does this What a good, profitable trade Friends hope that treating strategy is clear. If you have any query, feel free to ask in Q and a