market at any given moment. Remember, one of the advantages of using pivot points is that it is objective, so its very easy to test how price reacted to them. It simply tells us that if the market is trading above.2439, bulls are winning the battle, pushing the prices higher. S1 First level of support. If the market is trading above the PP, then the market is considered in a possible uptrend.
This information can help us decide which way to trade. We use forex ph the mapping method in three different ways: as a trend identification (measure of the strength of the trend a trading system using important levels with price behavior as a trading signal and to set the risk reward ratio (RR) of any given trade. Pivot points work best on highly liquid markets, like the spot currency market, but they can also be used in other markets as well. R3 Third level of resistance. So, we will have our PP and four more important levels drawn in our chart.