Reply To: Anyone Here Trade the Opening Range Breakout?
Another TA tool to look at is pivot points.
Pivot points are widely used by many traders, including floor traders, as a “road map” for day-trading.
The Standard pivot point calculation method, also known as the Classic or Floor method, uses the previous period’s high, low and close price to calculate the current period’s direction/sentiment, as well as future support and resistance levels.
The theory states that when prices trade above the pivot point, the sentiment is assumed to be bullish. Thus the market is likely to appreciate and move in an upward direction.
On the other hand, when prices trade below the pivot point, the sentiment is assumed to be bearish. Thus the market will most probably move in a downward direction.
Take a look at today’s EUR/USD chart for example.
