Trading is an interesting investment. Unlike other investment options, in trading, you get to choose your budget as well as the timeline. There are no strict maturity terms or tenures involved. So you can quit and withdraw your funds at any point. This liquidity is what makes trading an attractive option for those looking to make use of some spare cash at hand. With the rise in the number of trading systems like Qprofit System, more and more people are now confidently considering trading as an investment option. You would be able to find a detailed review of Qprofit System on that page.
There are various trading strategies followed by traders as well as technical indicators. The mix and match of these would result in a trading strategy that is unique to each trader. And this is what determines the actual profits and losses made.
Most day traders love using pivot points to make crucial decisions. These are points that are calculated taking into account, the highs and lows reached as well as the closing price of the previous session. Besides the basic pivot level, there are the resistance and support levels.
- Recent trends talk better than historical data:
Analysing, the historical charts help understand the direction to some extent. But the latest data would be more important. Given that pivot points are based on the most recent data these are known to give real-time information about the trends. For day traders pivot points based on 15 minute or 5 minutes or even 1 minute time frames work well.
- Dataset is great:
Larger timeframe charts might not capture each small price change. But when the time frame is shortened to understand the pivot points even the slightest fluctuations can be captured. This results in a more accurate data set to analyze.
- It really works:
Day traders have been using pivot points for making their decision for a long time now. And there are proven results accepted by traders around the world that pivot points really make the decision making the process simpler.
Unlike most other technical analyses using pivot points is quite simple. So even for those who are new to day trading, this method might be easier to learn. Finally, it all boils down to the accuracy with which you calculate the pivot points. When that is done right then day trading can be made much more convenient with these.