Market Entry Timing With The Pivot Points Analyzer

Market entry timing is critical for success in Forex. How can we decide when we need to open a position? Or to close it.

Have you tried using indicators for that? If yes, was your experience successful?

We did try and the results were not good at all.

The problem is that indicators are averaging, and so they lag by definition. Indicators can give you a “helicopter view”, but they alone are not good market timing tool.

Just one example – RSI. When it drops below 30 (or exceeds 70), it is widely used as oversold / overbought sign. But you probably have seen how RSI can not only stay in this state for substantial time, but reach even more extreme values.

We use the nature of the market – price discovery mechanism – to make the decisions. The markets always move from an extreme in one direction to the next – in the opposite.

Pivot Points Analyzer is a product we created for that. Watch this 20 s video:

The colored dots are the pivot points generated by our software in real time.  The market tops are marked red, the bottoms – blue.

Would you like to have access to such signals in your trading?

For market entry timing in the day trading, you can use the Pivot Points Analyzer as is. On the longer time frames, it would be best to combine its signals with indicators. This combination will give you the best of both worlds.

Obviously, some signals are false alerts. I.e. the market doesn’t turn the direction.

But even if this is the case, we can notice that the market usually slows down and seesaws around these points. So you may have the time to exit the market to minimize the losses if you are unsure.

Pivot Points Analyzer was recently added to the Smart Forex Tester Suite.  Which now gives you all needed to effectively develop and test trading strategies.