Accolades for Todd Hanson Ph.D.
<ul><li>Fulcrums: </li></ul><ul><li>Fixed price points that  </li></ul><ul><li>act like magnets </li></ul>
<ul><li>  What is a Fulcrum? </li></ul><ul><ul><ul><li>The support about which a lever turns  </li></ul></ul></ul><ul><ul>...
Fulcrum Examples <ul><li>EURUSD EURJPY </li></ul><ul><li>1.4000 134.00 </li></ul><ul><li>1.4020 134.20 </li></ul><ul><li>1...
Fulcrum Examples
Fulcrums Natural Support and Resistance
Making Use of Fulcrums <ul><li>Fulcrums are natural points of confluence “Magnets” </li></ul><ul><li>Prices gravitate from...
Fulcrum Key Fulcrums “Midpoint Danger Area” 00 90 80 65 50 35 20 10 00 You are allowed +/- 3 PIPS from the Fulcrums
<ul><li>Pivot Points: </li></ul><ul><li>Calculated Support and Resistance; </li></ul><ul><li>We all see them because we al...
Forex Pivot Points <ul><li>Professional traders and market makers use pivot points to identify important  support and resi...
BEGINNING OF TRADING DAY  WORK SHEET <ul><li>DATE: </li></ul><ul><li>Important News : Let’s see if there are any important...
Forex Pivot Point Trading Tips <ul><li>Here are some easy to memorize tips that will help you to make smart  pivot points ...
PIVOT S1 S2 S3 R3 R2 R1 Forex Pivot Point Trading Tips
DAILY PIVOT P R I C E R A N G E Forex Pivot Point Trading Tips
<ul><li>Confluence: </li></ul><ul><li>Where two, three, the more the better,  </li></ul><ul><li>of the Hanson puzzle piece...
<ul><li>Confluence  –  Noun </li></ul><ul><ul><li>1. a place where rivers flow into one another  </li></ul></ul><ul><li>2....
Points of Confluence <ul><li>Points of Confluences that we look for include: </li></ul><ul><ul><li>Moving Averages </li></...
False Confluence <ul><li>Traders often imagine false confluence as a result of the following pitfalls: </li></ul><ul><ul><...
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Forex Fulcrums and Pivot Points Trading Tips

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Fulcrums are natural points of confluence “Magnets”. Professional traders and market makers use pivot points to identify important support and resistance levels.

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Forex Fulcrums and Pivot Points Trading Tips

  1. 2. Accolades for Todd Hanson Ph.D.
  2. 3. <ul><li>Fulcrums: </li></ul><ul><li>Fixed price points that </li></ul><ul><li>act like magnets </li></ul>
  3. 4. <ul><li> What is a Fulcrum? </li></ul><ul><ul><ul><li>The support about which a lever turns </li></ul></ul></ul><ul><ul><ul><li>Statistically to be points of inflexion </li></ul></ul></ul><ul><li>To fine tune our trading plan—in volatile, liquid instruments we add the Fulcrum grid: </li></ul><ul><ul><ul><li>00: aka “the figure” fulcrum </li></ul></ul></ul><ul><ul><ul><li>20: - pips over “the figure” </li></ul></ul></ul><ul><ul><ul><li>50: aka “half the figure” fulcrum </li></ul></ul></ul><ul><ul><ul><li>80: - pips over “the figure” </li></ul></ul></ul>Fulcrums
  4. 5. Fulcrum Examples <ul><li>EURUSD EURJPY </li></ul><ul><li>1.4000 134.00 </li></ul><ul><li>1.4020 134.20 </li></ul><ul><li>1.4050 134.50 </li></ul><ul><li>1.4080 134.80 </li></ul><ul><li>1.4100 135.00 </li></ul>
  5. 6. Fulcrum Examples
  6. 7. Fulcrums Natural Support and Resistance
  7. 8. Making Use of Fulcrums <ul><li>Fulcrums are natural points of confluence “Magnets” </li></ul><ul><li>Prices gravitate from fulcrum to fulcrum so entering At or Near a fulcrum is key </li></ul><ul><li>When entering the trade, look for the opportunity where the pair exhausts itself on a retracement to the last passed fulcrum </li></ul><ul><li>When possible, avoid entering trades that are at midpoints between fulcrums </li></ul>
  8. 9. Fulcrum Key Fulcrums “Midpoint Danger Area” 00 90 80 65 50 35 20 10 00 You are allowed +/- 3 PIPS from the Fulcrums
  9. 10. <ul><li>Pivot Points: </li></ul><ul><li>Calculated Support and Resistance; </li></ul><ul><li>We all see them because we all use them </li></ul>
  10. 11. Forex Pivot Points <ul><li>Professional traders and market makers use pivot points to identify important support and resistance levels. </li></ul><ul><li>Simply put, a pivot point and its support/resistance levels are areas at which the direction of price movement can possibly change. </li></ul>
  11. 12. BEGINNING OF TRADING DAY WORK SHEET <ul><li>DATE: </li></ul><ul><li>Important News : Let’s see if there are any important news that happen for the past few hours: </li></ul><ul><li>Important Economic Indicators/numbers for today </li></ul><ul><li>Key Supports/ Resistance Levels/ pivot </li></ul><ul><li>Use calculator and 5pm (NYC) prior day close </li></ul><ul><li>Resistance 3 = High + 2*(Pivot - Low) Resistance 2 = Pivot + (R1 - S1) Resistance 1 = 2 * Pivot - Low Pivot Point = ( High + Close + Low )/3 Support 1 = 2 * Pivot - High Support 2 = Pivot - (R1 - S1) Support 3 = Low - 2*(High - Pivot) </li></ul>S3 S2 S1 Pivot R1 R2 R3 EURUSD GBPUSD EURJPY USDJPY
  12. 13. Forex Pivot Point Trading Tips <ul><li>Here are some easy to memorize tips that will help you to make smart pivot points trading decisions. </li></ul><ul><li>If price at PP, watch for a move back to R1 or S1. </li></ul><ul><li>If price is at R1, expect a move to R2 or back towards PP. </li></ul><ul><li>If price is at S1, expect a move to S2 or back towards PP. </li></ul><ul><li>If price is at R2, expect a move to R3 or back towards R1. </li></ul><ul><li>If price is at S2, expect a move to S3 or back towards S1. </li></ul><ul><li>If there is no significant news to influence the market, price will usually move from P to S1 or R1. </li></ul><ul><li>If there is significant news to influence the market price may go straight through R1 or S1 and reach R2 or S2 and even R3 or S3. </li></ul><ul><li>R3 and S3 are a good indication for the maximum range for extremely volatile days but can be exceeded occasionally. </li></ul><ul><li>Pivot lines work well in sideways markets as prices will most likely range between the R1 and S1 lines. </li></ul><ul><li>In a strong trend, price will blow through a pivot line and keep going </li></ul>
  13. 14. PIVOT S1 S2 S3 R3 R2 R1 Forex Pivot Point Trading Tips
  14. 15. DAILY PIVOT P R I C E R A N G E Forex Pivot Point Trading Tips
  15. 16. <ul><li>Confluence: </li></ul><ul><li>Where two, three, the more the better, </li></ul><ul><li>of the Hanson puzzle pieces come together </li></ul>
  16. 17. <ul><li>Confluence – Noun </li></ul><ul><ul><li>1. a place where rivers flow into one another </li></ul></ul><ul><li>2. a gathering [Latin confluere to flow together] </li></ul>Market Confluence
  17. 18. Points of Confluence <ul><li>Points of Confluences that we look for include: </li></ul><ul><ul><li>Moving Averages </li></ul></ul><ul><ul><li>Support and Resistance on the chart </li></ul></ul><ul><ul><li>Fulcrums </li></ul></ul><ul><ul><li>Previous High/Low Points </li></ul></ul><ul><ul><li>Breakdown & Retest levels </li></ul></ul><ul><ul><li>Pivot Points </li></ul></ul>
  18. 19. False Confluence <ul><li>Traders often imagine false confluence as a result of the following pitfalls: </li></ul><ul><ul><li>Wishful thinking </li></ul></ul><ul><ul><li>Picking tops and bottoms </li></ul></ul><ul><ul><li>Impatience or need to be in a trade </li></ul></ul><ul><ul><li>Trading too many pairs at once </li></ul></ul><ul><ul><li>Fear and Greed </li></ul></ul>

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