Pivot to Map Time Frame

A use of map is that you can see how the market goes relative to the earlier market movements. We can see the responses from traders and investors at anytime and get a general idea of where the market is heading to. It helps you to trade wisely.

Pivot point in Forex market is a turning point or condition. It is the market level changes from “bull” to “bear” or vice versa. It is a bull market if the market continues to go up level and if the market is expected continue goes down level, then it is a bear market. There are also have some support or resistance levels in the market. A possible bounce is considered reasonable if price can’t break the pivot point.

Pivot points function well in liquid markets as well as in other markets.

How does pivot point work? It simply works out with traders and investors use and trust, as well as bank and other traders’ companies. All the traders should know that pivot point is an important measurement for the strength and weakness of any market.

As already stated, the pivot point zone is a familiar technique as it works simply because of the use and trust from many traders and investors. But what about the other support and resistance zones (S1, S2, R1 and R2)? To predict something likely to happen for the support or resistance level with some mathematical formula in some way is quite subjective. We can not rely on that formula blindly merely because of the formula suddenly popped out on the level. For this reason, we have found another simpler alternative way to map our time frame, and somehow it is more objective and effective.

What we should know is that support and resistance levels are not merely a level resulting from the mathematical formula but they are measured objectively. These levels which have upturned there before have a higher probability of being more effective.

Mapping method works on trending and on sideways market conditions. In a trending market, it helps us determine the strength of the trend and trade off important levels. On sideways markets, it tells us about the possible turning levels.

How does our mapping method function?
Mapping method can function in three different ways such as

(i) As a trend identification (measure of the strength of the trend)

(ii) A trading system using important levels with price behavior as a trading signal

(iii) To set the risk reward ratio (RR) of any given trade based on where is the market relative to the previous session.