Vantage FX (www.vantagefx.co.uk) look at how to use the support and resistance levels generated by Pivot Points.<br /><br /><br />Pivot Points<br /><br />Today we are looking at a 6-hourly chart for AUD/USD for October. The pivot points in pink, are calculated as the daily high + daily low + closing price divided by 3.<br /><br />We see how previous pivots points can be used as support and resistance. As the week progresses, the pivot points change. The more active the previous day, the wider the pivot points.<br /><br />During the week of the 14th we see an up-trend where pivot points work as support to continue to promote the up-trend.<br /><br />By the end of the week, we see that a very strong move shows the market break through previous levels and establish a new range for the pivot points.
