Pivot Point Trading Tips

• If price at PP, watch for a move back to R1 or S1.
• If price is at R1, expect a move to R2 or back towards PP.
• If price is at S1, expect a move to S2 or back towards PP.
• If price is at R2, expect a move to R3 or back towards R1.
• If price is at S2, expect a move to S3 or back towards S1.
• If there is no significant news to influence the market, price will usually move from P to S1 or R1.
• If there is significant news to influence the market price may go straight through R1 or S1 and reach R2 or S2 and even R3 or S3.
• R3 and S3 are a good indication for the maximum range for extremely volatile days but can be exceeded occasionally.
• Pivot lines work well in sideways markets as prices will most likely range between the R1 and S1 lines.
• In a strong trend, price will blow through a pivot line and keep going.