Trading with Pivots, Support and Resistance.

A vital tool for both futures and FOREX traders.  These values are calculated each day based on the previous day's High, Low and Close.  Knowledge of these key points provides us with a visual guideline for trading.  Many traders, especially in the FOREX market, use these numbers and as a result the market generally gets active when these points are violated.  The chart below is configured with the 3 KEY lines. Notice the selling from the red line (resistance) and when the price breaks below the green line (pivot).  The target for this trade is at or near the blue line (support). These key points provide us with entry and exit points for trading. 

We also make use of monthly Pivots, Support and Resistance values.  This information is vital for longer term swing trades . Once again they provide us with intelligent entry, exit and stop points for our trades.  See the chart below where we have monthly Support, Resistance and Pivot lines plotted on the Daily chart for December 06 coffee. The data plotted is for the month of October.  Take note how the blue support has held price up. The chart appears to be turning up at this point. Bullish swing traders would be buying here with stops set just below the support line.  Initial long targets would be near the monthly pivot line and any break above the pivot would signal more buying. 

We publish Pivots, Support,and Resistance for a wide variety of futures and FOREX markets on our FREE weekly Trade Plans. If you wish to receive CTG's BUY and SELL  signals  for  Futures and FOREX markets Click here to register. It's free and fast. 

View  CTG's Trade Plans for Futures and FOREX in PDF format.  Published weekly and FREE! to registered users.  Our Trade Plans include weekly & monthly support, resistance and pivot numbers for over 30 markets.