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Tuesday, September 18, 2007

Pivot Points Summary

Pivot Points is a very useful techniques that uses previous bar's high, low, close to project the support and resistance for the current bar. Daily pivot points are usefull swing trading while 4 hours pivot points are useful for intraday trading. Meanwhile, hourly pivots can be used for identifying better entry/exit points within the day. Just take a look at the follow charts and you'll see traders do respect pivot levels a lot.

* Daily pivots are calculated from previous day's high, low, close which ends at 5pm est or 21pm GMT.

* 4 Hours pivots are calculated from previous 4 hours bar which ends at 2100, 0100, 0500, 0900, 1300, 1700 GMT.

* Hourly pivots are calculated from previously hourly bar.

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