Combining Chart Pattern Recognition and Pivot Point Analysis

My Forex Video trading course shows how to combine chart pattern recognition with Pivot Point analysis to produce extremely profitable results. Yesterday, I gave you a brief overview on trading using Pivots. Today, I want to give you an overview of how I trade the Forex:

I personally like to focus on a small number of the more consistent, reliable and re-occurring formations. The ones I am particularly interested in are the powerful reversal formations at TOPS and BOTTOMS of price ranges. When chart pattern recognition skills are applied with the use of the Pivots Program, benefits accrue. The targeted support and resistance numbers are like an early warning system.

Being aware of an important price target level, accompanied by a pattern, you can then anticipate your move. Specifically, the pivot point calculations give an early warning signal, and chart formations confirm potential buying or selling opportunities. Formations like TRIANGLES and WEDGES are instrumental in helping you take action.

Having access to support and resistance numbers, plus combining the bullish or bearish patterns, facilitates identifying bankable trades. For example, even if you were not convinced that a downtrend would hold, then at least the "breakout" from a symmetrical triangle pattern in a downtrend would have enabled you to capture a portion of the ensuing decline.

Bullish and bearish pattern recognition helps you get in at bottom and top price reversals. Armed with these indications, combined with pivot points, this will provide a wealth of signals in order to develop a proper game plan. At the very least, it will keep you from buying the high or selling the low.

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Peter R. Bain