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Need help becoming profitable? Watch this interview, where Jarratt reveals THE EDGE, which got him #2 ranking: http://www.jarrattdavis.com/forex-course Welcome to this special presentation on pivot points. This is a two-part video. In part 1 we gonna be looking at pivot points themselves we gonna talk a little bit about what they are and how they derived and also the zones that they create. You can use the zones in your trading. The second video will look at the actual levels themselves and look at how you can actually incorporate them into trading, whether you buy or sell from the levels how you get trading opportunities from those pivot points. So let's begin with what the pivot points are. They basically are calculation based on the previous price. What we're looking at here are daily pivot points. Now you can use weekly pivot points, monthly pivot points even yearly people points. But the most commonly used pivot point, of course, is the daily pivot. Now the daily pivot is the best one of all. Here its represented by the pink line here. The daily pivot is the strongest one. This is the central line and this is derived from calculating the price action the move of the price from yesterday's data it then plots today's pivots and that's what the price will react to in the coming session. Now what we gonna look at here is the zones that these pivots create. Because you notice these levels above and below. So you got the pink line here, above it you got R1, R2 and R3. The R stands for resistance. In between those lines you got these blue lines called M5, M4, M3. That stands for midpoint so the M is just literaly the midpoint in between each main pivot. So in between pivot and R1 you got M3 in between R1 and R2 you got M4 and so on. The other way going below the central pivot you'll see S1, S2, S3. That stands for support. So basically, if the price is below the central pivot line we want to be looking for buying opportunities if the price is above the central pivot line we want to be looking for selling opportunities. That's the basic concept of how pivot points work. And in the next video we will be look at the actual levels themselves and how you can use these in your trading. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Join my Free Video Course and Learn Forex Success: http://www.jarrattdavis.com/go/free-f...