The Pivot in FOREX

The pivot point is the level at which the market direction changes for the day.
Using some simple arithmetic and the previous days high, low and close, a series of points are derived.
These points can be critical support and resistance levels.
The reason pivot point trading is so popular is that pivot points are PREDICTIVE as opposed to LAGGING indicator.
You use the information of the previous day to calculate potential turning points for the day you are about to trade (present day).
The general idea behind trading pivot points is to look for a reversal or break of R1 or S1.
By the time the market reaches R2,R3 or S2,S3 the market will already be overbought or oversold and these levels should be used for exits rather than entries.

Formula for Pivot:

Resistance 3 (R3)= High + 2*(Pivot - Low)
Resistance 2 (R2)= Pivot + (R1 - S1)
Resistance 1 (R1)= 2 * Pivot - Low
Pivot Point = ( High + Close + Low )/3
Support 1 (S1)= 2 * Pivot - High
Support 2 (S2)= Pivot - (R1 - S1)
Support 3 (S3)= Low - 2*(High - Pivot)

The Elliot's Wave

A typical wave pattern consists of five waves up in a bull markets, followed by three waves down.

The “five waves up” consists of three impulsive waves, 1, 3 and 5 and two corrective waves, 2 and 4.

The correction following the completion of the five waves unfolds in three corrective waves, a, b and c.

Guidelines:

1) Wave 3 cannot be the shortest of the impulsive waves

2) 1 and 4 should not overlap (unless in a diagonal triangle)

3) Wave 2 and 4 should alternate (if one is complex, the other should be simple)

Forex 101

What do you know about trading FOREX?....
You know you wanna make profit EVERYTIME you enter the trade....
You know you NEVER want any losses at all...
but how can you do that?...
Stories of successful trader making hundred of pips makes you feel helpless....
hmmmm.....
it's time to know how to trade and not try to know.....
clueless yet?....
ok...hint for you...ask this..''what do I see in an hour time frame candlestick chart?"..
be it Bullish or be it Bearish...
hmmmmm...
***BUY or LONG at SUPPORT PRICE***
***SELL OR SHORT at RESISTANCE PRICE***