Before you use the tool, Forex Pivot Points, what benefits you can get from the tool, you must know the definition of forex itself. Forex is the trading where you can make money from the difference of each currency value when you are exchanging it. Many people often do the transaction. Once you exchange your Dollar, you will get surprised that.
Dollars in your wallet is worthwhile unconsciously, let say you are American and you want to visit Indonesia. All you need to do to travel around the country is to buy Rupiah, and how you do it is through money changer since Rupiah is very cheap in that day. You can buy Rp. 13,000 with one Dollar. In other words, when you are exchanging one currency to one another, then it is called participating in the forex trading. The most popular forex market in the world is NYSE (New York Stock Exchange).
Function of Pivot Points
In order to get profit, traders and brokers must be smart in predicting the level of raising and falling off a currency and when the best time to sell or buy the currency. Is it the time to hold the currency you have or to release? Pivot Points can function as an analytical indicator and then signify levels of the important technical consequence. If you use it in related to other technical statistics like hold up or resistance or namely Fibonacci, it is going to be an effective tool. The points are determined in terms of the high, low of prices and even the close prices of earlier days, weeks and even months.
When is the best time to make money from forex?
When it comes to seeing the display screen of the exchange rate of each currency, you must predict which will go down and which will be stronger and when is the best time to make money from forex? To analyze the best moment in the forex trading, then you must see whether the recent price is dealing beyond the daily pivot point or not. If it is, then you can use it as an indicator of a long position of your investment.
Otherwise, if the recent price is dealing below it, so it functions as an implication of short positions. While the level of support and resistance level can function as the time to exit the trade. Let sat, if the price reaches the pivot point, so use the R1 and R2 as the targets. While you can consider that there will be long positions, if you see the indicators show a turnaround trend.