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[PIVOT POINTS]

Hello traders, today I will explain you about one of the best indicators (PIVOT POINTS) which is used by many of the traders to know about the support and resistance of the candle.

Q) What is Pivot Points?

Ans) Pivot Points indicator works as a price action. It is used by traders to know the support and resistance of the candle during the trading hours and will give you exactly or precisely the trend in the candle either bullish or bearish. And it also gives the buy and sell signal by support and resistance.

Q) What setting to be change in Pivot Points so that it is easier to read?

Ans) No changes in setting are needed.

Q) How to read Pivot Points lines?

Ans) When we apply Pivot Point indicator some yellow lines are drawn on the chart either above or below the candle. When the candle is in bullish trend and a yellow line is above the candle the trend can reversed or it may take some time to cross the yellow line. When the candle is bearish and a yellow line is below the candle the trend can reversed or it may take some time to cross the yellow line. When the candle has taken support on yellow line then the market will be bullish and when the candle has taken support from down or resistance from the yellow line the market will be bearish. There are some letters written in the starting of yellow line such as R1, R2, R3 etc for resistance and S1, S2, S3 etc for support and P for the main support and resistance. But sometimes resistance works as support or support work as resistance. P works as both support and resistance and therefore it is a strong signal line.

Q) During which time frame should we use Pivot Points?

Ans) As this indicator works well on shorter time frame. For day trading (in nifty and bank nifty) or intraday use 1 min or 3 min or 5 min. Avoid using it for swing trading or long-term trading because it is not so accurate.

Q) When to wait even if the Pivot Points given the signal to buy or to sell the stock?

Ans) So before buying the stock when the candle has crossed the yellow line from down see that the candle should come above the yellow line and make base or support on yellow line then after that another candle should come above the candle which has make base on yellow line. Then wait and see if three candles are green. 1st candle should make base on yellow line 2nd candle above the previous candle and 3rd candle above the 2nd candle if all 3 these candles are green then you can enter. Same applied to the candle which has made resistance or support from down of the yellow line and had crossed the yellow line from above. Wait for the 1st candle which has made support from down of the yellow line. Then see 2nd candle which should be below the 1st candle and then 3rd candle which should be below the 2nd candle. All the candles should be red.

Q) Sometimes there is a false Indication in Pivot Points so how to make it more accurate?

Ans) But sometimes there is a false movement in Pivot Points so do not only use it as the only indicator for the stock price. I suggest you to use the indicator RSI and EMA 20 with EMA 50 with Pivot Points. By using this it will save you from false indication of Pivot Points.

I WILL ALSO POST THE BLOGS ON RSI AND OTHER INDICATORS

DISCLAMIER:

It is only for educational purpose which I have studied and test in the market. Any decision you take during the market is your own responsibility.



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