Pivot Points Anticipate Forex Market Breakouts

Wouldn't it be great to be psychic? Wouldn't it be great if when you sat down to make your Forex trade you could somehow know ahead of time when and where the market was going to breakout, and ride that baby to maximum profits?

It's one thing to look back on a month of charts and point out where all the pivot points occurred, and see where the best pivot reversal points were, but it's an entirely different thing to be able to see and anticipate the pivot reversals as they are happening, and to make profit from them.

A pivot point, when it is part of a pivot reversal, is basically the turning point where a currency pair hits the highest point of a high trend, or the lowest point of a low trend, before retracing back the direction it came. Basically, the "new high" or "new low" will help show you how far the market is willing to go in either direction before it reverses course back into itself. This is critical!

The reason these pivot highs and pivot lows are so important is that the area between the pivot high and low bars is where you will notice most of the price action, but there are certain breakout days when the market will shoot past the current range, and these days are the pivot reversal breakout days. These are denoted by large movements in the market that are fueled by strong momentum. Remember: large movements + strong momentum = HUGE PROFITS!

Pivot points can lead to pivot reversal breakouts, and these opportunities are too good to ignore. Now you have knowledge, but knowledge is power (or in this case, profits) only when you know how to use it right! When a pivot reversal happens, you want to see whether the market breaks a new higher high or a lower low. Once you have this information, here's the basic rule for how to act on it:

1. If the market goes higher than a pivot high, you want to BUY!

2. If the market drops lower than a pivot low, you want to SELL SHORT!

It usually takes a day for the breakout to occur. Sometimes the breakout won't materialize. That's fine. If that's the case, close out your positions and wait for the next pivot reversal. Have patience, and you will bag that big profit day.

Make sure that these trades are performed with a one day time table in mind. Once the breakout occurs, close your position at the end of the trading day to protect your gains. Follow this advice, and you will be a very happy and wealthy Forex trader.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder: Founder, ForexImpact.com

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Your Trading Type

Everyone is different. So it would make sense that everyone has a different trading strategy. Developing a trading strategy that fits you should be the goal of every new trader.

Most people do not realize that someone else's strategy may not work as well for you as it does for them. They may draw support lines different then you or they may decide to move up there stops at different times then you do. Every little thing matters. This is why it is important to create your own system.

The first part of that is finding which strategy fits your personality. Do you like the high probability trades that you can get from option selling? Selling out of the money options doesn't attempt to strike it rich with one big trade, but tries to gain a smaller consistent income every month.

Maybe you want the quick profits and losses that come with swing trading. Making huge returns when you are right and taking small losses when you are wrong allows you to seek out the huge short term returns. Or maybe you want even quicker profits that come with day trading. Gaining small profits throughout the day can add up after all.

Maybe you are the fundamental investor who prefers to buy a fundamentally strong stock and hold onto it for the long term. This is the easy do your research, buy it and forget it approach. This way you don't have to worry about short term movements, but you will most likely not make as big of a return.

Whatever strategy you choose it is important to develop a system for trading it. Sticking with that strategy to get it to work out is also a key to making a good return in the markets. If you constantly go from one strategy to another you will not get anywhere. But if you stay with it and continue there is no telling how far you will be able to go.

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