Basic Questions About Pivot Points on 4x

[CarpeUK]

Basic Questions About Pivot Points on 4x
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I am having a little trouble understanding something about PP and was wondering if anyone could help

The basic strategy as I understand it on PP/S&R is

1. Wait for the prices to reach the Support / Resistance or Pivot Point
2. Look for reversal patterns,
3. and then go long or short with a stop

The 3 questions I have about this is

What is meant by a reversal? Is it, wait until it hits or goes through a PP or S/R level then heads back in the opposite direction? E.g., rises (long) to 109.53 or passes this then does a u-turn and starts to drop (short)

In addition, where can I find the close price because in effect the 4x market does not close so therefore there is no close price?

And the final question is what would be the best chart settings to see/catch the reversal to enter the trade

Thanks for the help
CarpeUK

P.S
If anyone has a chart to hand that shows a reversal so I know what to look for that would be nice

 

[sulong]

Depends what you mean by pivot point. A floor pivot or a printed price pivot.
A printed price pivot will potentially be the same as S/R, although, you'll need to determine whether it's a minor or major s/r.

My idea of a reversal, is a successful test of a prior s/r level. Price will test, and then go the opposite way .Theres no way of knowing if a reversal will follow through or not.

You are correct about the close, still, a lot of traders will use 4:00 pm (NY time) as the close, for the purpose of calculating the floor pivots.

As far as your third question, you will need to figure that out for your self. Study up on S/R, mark them on your chart, then observe how price interacts at those levels. Use different time intervals, at the same time, and see which one gives you the information you can use. ( example..1m,5m, 60m.ect...)