Pivot points give you two playbooks, depending on the day's mood.
Range days: fade the levels
On quiet days, price often bounces between S1 and R1. Buy near S1 with a stop below S2; sell near R1 with a stop above R2.
Trend days: trade the break
On busy days (often after big news), price can slice through R1 and run to R2. A close above R1 can be a breakout entry, with R2 as the target.
Pro tip
Use the pivot point as a mood check at the open: price holding above PP = buyers in charge, below = sellers.
Wick says
Pivots work best on liquid pairs like EUR/USD and GBP/USD during London and New York, when lots of day traders are watching the same lines.
Key takeaways
- Quiet days: fade S1 and R1.
- News days: trade breaks toward R2/S2.
- PP acts as the day's bias line.