Floor Trader Pivot Strategy

Pivot points are also know as floor trader pivots or pivots or floor pivots or session pivots.

Floor trader pivot strategy.

Floor trader pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets while effectively managing risk. Floor trader pivots are support resistance levels that floor traders have used in the pits of the exchanges for many years. Floor trader pivot calculator calculate pivot levels for any trading instrument. They define an equilibrium point considered a neutral market called the pivot point or central pivot.

The market is considered bullish when it s above the central pivot. You need to learn how to trade with pivot points the right way. The market is considered bearish when it s below. These are the places where traders expect support and resistance to occur in the market and as such are used as entry and exit points for trades.

Depending on the type of pivot formula used you can generally generate and use up to 9 levels. Trading with pivot points is the ultimate support and resistance strategy. I am only focusing on the pivot itself a future article will include the formula s for those levels and use to find range expansion. Floor traders and other professionals who do the actual buying and selling of futures contracts in the trading pits of the exchanges generally employ very similar systems for valuing the price of these instruments in.

Pivot system support and resistance explained. If you want to take full advantage of the power behind the pivot points. The pivot is the primary starting point for tools to incorporate into your trading.