In this continuing series highlighting the seldom mentioned topic of yearly pivots, gold will be covered in detail. We will look at how yearly pivots in marked significant turning points in gold as well as the levels to watch out for with the new set of yearly pivots. The year was not very kind to the shiny metal.
However, after hitting a three year low of Yearly pivots marked gold's decline with pinpoint accuracy. Gold Yearly Pivots.
Notice in the chart above how price hugged the central pivot red line. The close below the yearly central pivot marked the beginning of a year-long decline to 3-year lows. Gold went on to make the low of the year at Yearly pivots were useful for determining the beginning of the decline as well as locating areas to re-enter or add more to a position. You may now be wondering what the yearly pivots have in store for gold.
Gold starts higher than where it left off in This was also the highs of October A new candle is due out next Monday and if it can break above the high of the doji candle could lead to an explosive move toward the R1 pivot and beyond. Moves above the central pivot are regarded as bullish. On the other hand, a break below Remember that yearly pivots represent potential support and resistance.
Using the pivot point calculation on the high low and close of , these levels can be created. Yearly pivot levels can help traders determine price targets for taking profit as well as entry and stop areas. To contact Gregory McLeod, email gmcleod dailyfx. Follow me on Twitter gregmcleodtradr. This article showed you how to identify potential areas of strong support and resistance in the form of yearly pivots.
To extend your knowledge take this free interactive video tutorial on the RSI indicator. RSI can be used with pivots to pinpoint entry levels. You will be asked to sign the Guestbook which will give you a Universal Access Pass to other free Forex lessons.
Watch Greg McLeod at 9: DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Click here to dismiss. Commodity pit traders have used pivot points for decades to determine potential support and resistance areas. Gold yearly pivot points from forecasted significant turning points Gold is approaching the central yearly pivot point at Foundations of Technical Analysis: Classic Chart Patterns, Part I.
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