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.

Forex Signals

Forex Signals

Understanding Pivot Points

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.

Learning all the Essentials from Demo Trading

Forex Signals Telegram Signals

Forex Signals Telegram Signals

Check out our Free Forex Signals Telegram Channel

Trade better, discover more Forex Signals Strategies
Better Still Sign Up For our FX Signals Daily
Read more on Forex News Today
Download our Forex Signals APP

Join our 21,345  Subscribers Forex Signal Packages!!