The Trading Opportunities Using ‘Pivot’ Points:
By G.R. Harrison, Copyright 2018
Our focus today is on the US Dollar Pivot Prices and how to take full advantage of them.
Most traders are looking for the low-probability trades. Of course, they don't know this. Most think that price break-outs are going to occur all the time. In fact, though, they rarely do.
Gold, Crude Oil, Stocks; all the popular markets have average traders looking for disaster as the next move pushing the markets over-the-edge.
However, the truth is that breakout price moves are quite rare (less than 2 chances in 10) occurring only around 15% of the time overall. Sideways to 'reverting-back-to-the-trend' price movements occur around 85% of the time, so, that's the way to bet when you're presented with price pivot points on a chart.
Patience and Waiting then come into play.
At the critical pivot price points like those shown on the US Dollar above, the risk of being wrong (a Stop) can be adjusted to be less risky by waiting for price to approach the pivot point by an amount equal to or less than the risk you've allowed for that trade. - George