How to Use Pivot Points to Measure Market Sentiment
Telegram Fx Signals – There is one other way to incorporate pivot points into your forex trading strategy, and that’s to use it to gauge market sentiment.
What this means is that you can tell whether traders are more inclined to buy or sell the currency pair.
All you would need to do is to keep an eye on the pivot point. You could treat it like the 50-yard line of an American football field.
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Depending on which side the ball (in this case, price) is on, you can tell whether buyers or sellers have the upper hand.
If the price breaks through the pivot point to the top, it’s a sign that traders are bullish on the pair and you should start buying the pair like it’s a Krispy Kreme donut.
How to Use Pivot Points to Measure Market Sentiment
How to Use Pivot Points to Measure Market Sentiment
The price being below the pivot point would signal bearish sentiment and that sellers could have the upper hand for the trading session.
In the chart above, we see that the price tested the pivot point, which held as a resistance level. Next thing you know, the pair keeps going lower and lower.
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