Are you looking for a reliable and effective tool to improve your intraday trading? Look no further than the Pivots Point Indicator. This powerful tool can help you identify potential reversal points in the market, making it an invaluable asset for any intraday trader. In this article, we’ll dive into what the Pivot Points Indicator is and it is really Best Indicator for Intraday Trading.

Pivot Points Indicator – Best Indicator for Intraday Trading

The Pivot Points Indicator is a technical analysis tool used to identify potential support and resistance levels in the market. This tool is particularly useful for intraday traders who want to take advantage of short-term price movements.

The Pivots Point Indicator calculates several key levels based on the previous day’s high, low, and close prices. These levels include the pivot point (PP), support levels (S1, S2, S3), and resistance levels (R1, R2, R3). These levels can be used to help identify potential entry and exit points in the market.

How to Calculate Pivots Point Indicator?

To calculate the Indicator, you’ll need to use the high, low, and close prices from the previous day’s trading session. Here’s how to calculate each level:

Pivot Point (PP) = (High + Low + Close) / 3

Support 1 (S1) = (2 x PP) – High

Support 2 (S2) = PP – (High – Low)

Support 3 (S3) = Low – 2 x (High – PP)

Resistance 1 (R1) = (2 x PP) – Low

Resistance 2 (R2) = PP + (High – Low)

Resistance 3 (R3) = High + 2 x (PP – Low)

How to Use the Pivots Point Indicator?

Here are the steps to use the Pivots Point Indicator on TradingView:

• Open the TradingView chart of the instrument you want to analyze.

• Click on the “Indicators” button in the top toolbar.

• Type “Pivot Points” in the search bar and select “Pivot Points Standard” from the list of results.

• The indicator will appear on the chart with the support and resistance levels marked as horizontal lines.

• You can customize the settings of the indicator by clicking on the gear icon next to it. Here you can adjust the time frame, color scheme, and other parameters.

• To use the indicator for trading, look for the price action around the support and resistance levels. If the price is approaching a support level, you may consider buying or going long. If the price is approaching a resistance level, you may consider selling or going short. Remember to always use proper risk management techniques, such as setting stop-loss orders and taking profits at predetermined levels.

By using the Pivots Point Indicator on TradingView, you can easily identify potential entry and exit points in the market and make more informed trading decisions.

Also Read: Best SEBI Registered Intraday Tips Provider in India

Most Useful Strategy and How to Apply?

One of the most useful strategies for using the Indicator is the pivot point bounce strategy. This strategy involves buying or selling when the price bounces off a support or resistance level.

Here’s how to apply the pivot point bounce strategy:

• Identify the pivot point, support, and resistance levels for the day.

• Wait for the price to approach a support or resistance level.

• If the price bounces off the level, enter a long or short position, depending on the direction of the bounce.

• Set a stop-loss order just below the support or resistance level.

• Take profit when the price reaches the next support or resistance level.

It’s important to note that this strategy works best in a trending market. If the market is choppy or ranging, it may not be as effective.

Advantages and Disadvantages of the Pivot Points Indicator:

Like any trading tool, these Indicator also has its advantages and disadvantages. Here are a few to consider:

Advantages:

Easy to calculate: The Pivots Point Indicator is easy to calculate, making it accessible to traders of all experience levels.

Can be used for different timeframes: The Pivots Point Indicator can be used for different timeframes, making it a versatile tool for traders.

Helps identify potential entry and exit points: The Pivots Point Indicator can help traders identify potential entry and exit points in the market.

Disadvantages:

Can be inaccurate in a volatile market: The Pivots Point Indicator can be inaccurate in a volatile market, as sudden price movements can make the levels irrelevant.

Doesn’t work well in a sideways market: The Pivots Point Indicator doesn’t work well in a sideways market, as there may not be clear support and resistance levels.

Shouldn’t be used in isolation: The Pivots Point Indicator shouldn’t be used in isolation. Traders should use it in conjunction with other technical analysis tools to make informed trading decisions.

Also Read: Ichimoku Cloud Indicator

Frequently Asked Questions for Pivot Points Indicator:

Q: Can the Pivot Points Indicator be used for long-term trading? 

A: While the Pivot Points Indicator is primarily used for intraday trading, it can be used for longer-term trading as well.

Q: Do I need to calculate the Pivot Points Indicator manually? 

A: While you can calculate the Pivot Points Indicator manually, most trading platforms and charting software have the indicator built-in.

Q: Can the Pivot Points Indicator predict future price movements? 

A: No, the Pivot Points Indicator can’t predict future price movements. It can only identify potential support and resistance levels based on previous price movements.

Final Words:

The Pivot Points Indicator is a Best Indicator for Intraday Trading. By calculating potential support and resistance levels, traders can identify potential entry and exit points in the market. While the indicator has its advantages and disadvantages, it can be a valuable addition to any trader’s toolkit. However, it’s important to remember that no trading tool is foolproof, and traders should use the Pivots Point Indicator in conjunction with other technical analysis tools to make informed trading decisions.