In today forex faq, we have a question from one of our fellow readers asking about the pivot point indicator.
Below is the question:
Is it best to trade with forex pivot point indicator alone or to depend on signal to trade?
I personally will not recommend anyone of you to trade based on just one indicator. In any trading strategy, you need to have a combination of about 2 indicators, at least 1 support or resistance and if possible candlestick patterns.
Using a combination of these factors can help to increase your winning percentage. If you are trading just with the forex pivot point indicator, you are only having the support or resistance identified. You need to have another signal from at least 1 more indicator to tell you whether you should enter a trade or not.
Besides the risk reward ratio, a professional trader also needs to find ways to trade with high probability trades. This can only be done with the help of indicators, support and resistance as well as candlestick patterns.
For me, I use the forex pivot point indicator as a way to identify level of strong support and resistance as well as identify the price range for the day.
I will always have one or two indicators that can tell me whether I should enter a trade now. There are times where I will look for important forex candlestick patterns like the railway track to help me increase my probability of winning.
For your question above, I will say that using the forex pivot point indicator is not enough. You should try to add it other indicators that can help you in your entry and exit.
I hope that I have answered your question and if you guys have anything to share, do feel free to give your comment below.