DEFINITION of 'Forex Pivot Points'

Forex Pivot Points

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Pivot Points

Professional forex traders and market makers use pivot points to identify potential support and resistance levels.. Simply put, a pivot point and its support/resistance levels are areas at which the direction of price movement can possibly change.

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Forex trading may be profitable for hedge funds or unusually skilled currency traders, but for average retail traders, forex trading can lead to huge losses. If you think it will hold, what you can do is buy at market and then put a stop loss order past the next support level.

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