Like in the case with technical analysis, there are hundreds of trading methods and techniques. We will just
mention the most well known and easy understood ones. These are:
Pivot Points
Forward Rolls
Forward Points
Carry Trades
Some traders would also name options as a separate trading strategy, which of course it is. But to discuss options
and futures we would need a separate study course.
Pivot points have been used by foreign exchange traders for many years. They use yesterday’s high low and close
prices to project five levels of potential intraday support and/or resistance for the current trading day’s activity.
To calculate a pivot point you need to add the yesterday’s high, low and close prices (H+L+C) and divide it by 3.
First resistance level = (2 x Pivot point) – L
First Support level = (2 x Pivot point) - H
Second Resistance = Pivot point + (H - L)
Second support = Pivot point – (H – L)
Each level can be put on the intraday chart as a horizontal line. 30 minute chart may be used for that. It is likely
that the trade will initially start between first support and first resistance levels. Of course on some days when the
market is moving quickly and away from yesterday’s levels these points will not help you. However, on most days
the market will appear as it is influenced by projected pivot points levels and it may show you for example when
buying a particular currency pair should be delayed. We would not go through other strategies here as there are
hundreds of books and a lot of free material available on the Internet which discusses all the strategies in details.
Like with technical analysis, we recommend concentrating on 1 or 2 strategies and perfecting your trading using
them. Only with knowledge and experience you can achieve substantial results.
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