April 28, by Austin Passamonte. By that I mean price action reacts much better to resistance and support levels on a chart much better than equity markets do. FX markets react better than stocks when it comes to Fibonacci tools, pivot points, trendlines and prior resistance — support levels, etc. Click here to order your copy of The VXX Trend Following Strategy today and be one of the very first traders to utilize these unique strategies. This guidebook will make you a better, more powerful trader.

A lot of stock market price action is driven up, down or sideways by an endless procession of factors. Part of it is economic, part of it is fundamental to specific company, industry or sector. Another part of stock market action is pure emotion. Someone makes or sells a widget with perceived value higher than what turns out to be economic reality.

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Another part of stock market behavior is rampant program trading. I read somewhere this weekend that stock market program trading measured by percentage of volume is now at historical all-time highs. Good luck timing some of those price swings or turns when the big bots flip one another like scattered dominos.

Each currency is weighted on econ conditions for that specific pair versus any or all others in the marketplace. There is no sentimental or emotional impact on a currency. No one buys the British Pound to unreasonable heights because they like the color scheme of the paper bills.

Volume studies like market profile or volume-weighted average price vwap are not applicable in spot forex markets because there is no centralized volume measurement.

We could say that the old floor traders pivot values are one way to measure fair-value pricing in currency markets, i. Frequent tests of that level or more aptly zone gives a chance for traders to see which way prevails on the inevitable push away from there. Like we said earlier, FX currency markets trade technically purer than stock markets being mercifully devoid of emotional baggage that gets attached to companies underlying stocks.

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Floor trader pivot levels are one chart tool which adds value to our chart. I personally ignore all the levels except for daily pivot-point itself… actually have the others turned off so only the pivot is plotted. After looking at all manner of settings, I simply go with a midnight to midnight est measurement and leave it at that. Writing the chart software code to measure FX sessions from 5pm est to 5pm work from home assembling circuit boards or something similar is another choice.

Others trading system by xard777 to align floor trader pivot session measures with the hours of trading for buy forex or tambo specific symbol or pair, i. In my opinion those are probably equal choices for effectiveness but no better or worse than standard pivot settings for cara kerja broker forex to midnight stretch.

Along the endless journey a market takes going from point A to point B or likewise B to A, price action pauses at numerous spots.

Pick one and stick with it for consistency sake. Price action then settled right back to the R2 which was prior resistance now turned support. Where it heads to next may be determined by which way it breaks from the R2 magnet of price measurement. Again, taking entry signals right at the various levels or as price action moves away from them is a pure form of catching directional moves headed towards visible targets.

Using that measure in conjunction with your other varied chart tools is an additional edge for pending directional bias. Summation Floor trader pivots have stood the test of time for a reason: That trading forex using pivot points, it pays to know where key price magnets are which help show the tipping points on our chart. Austin Passamonte is a full-time professional trader who specializes in E-mini stock index futures and commodity markets. Austin trades privately in the How to get more money in megapolis ipad Lakes region of New York.

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