More on pivot points
Wow, 1.4550 is the monthly pivot on EURUSD. As soon as Sunday night opened price started falling, surpassing this level. On my mt4 charts, I found a good pivot point indicator that plots these points automatically for me. I particularly like to watch the weekly pivot and weekly S (support) and R (resistance), and then also the daily pivot, S and R, and the midpoints, M1, M2, M3, and M4. The reason these pivot points and midpoints mean anything is because many many traders use them and watch them. You will see more often than not, price will hesitate at these points, or even reverse. I have all these points on my daily cheat sheet so that I can follow them. But the monthly and weekly pivots are very powerful: look how EURUSD on Wednesday came back down to the monthly pivot at 1.4550 and this level became the new support level. As long as price remains above this level, my bias has changed back to the upside. For my intraday trading, I will watch for price to dip and then I will enter LONG trades up to the R pivot, or possibly the M4. Rule of the midpoints is: M3 to M1, and M2 to M4. These points do not work all the time, just like everything in technical analysis, but it is a good starting place. To learn more about pivots, go to ww.babypips.com. To get the super great automatic pivot points indicator on your mt4 charts, google this: SDX-TzPivots[1][1], and also ###auto Pivot. To see all the pivot points daily, go to actionforex.com