Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 4 - Technical Analysis
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 5 - Psychology
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 6 - Risk and Money Management
2 of 2

PIVOT RELATIONSHIPS AND PATTERNS

There are various relationships and patterns associated with the Pivots. They provide information to the day trader or the strategic player.

PATTERN 1: BUY SIGNAL

  • The low is less than the 1st deviation pivot down
  • The high is greater than the 2nd deviation pivot up
  • The market has tried to move higher and failed.
  • The close is less than the opening.
  • The close is greater than the 3-period moving average

PATTERN 2: PROBABILITY

  • Price goes beyond both 2nd deviation pivots
  • The relationship between the open close dictates the bias between up and down

The key question apart from accuracy is how often this happens.

Scroll to Top