# Binary Options with Pivot Points 2020 - Act Strategically Now

Binary options with Pivot Points 2020: what needs to be considered? Useful tips in the guide Now trade reversals on a short-term basis.
As is known, courses run in waves, or rather in alternating trends. Reversals take place on a short-term or long-term basis in certain price ranges, which have been a relevant demand-supply constellation in the past.

With regard to technical analysis, average values ​​are often used to identify relevant ones Price ranges used. A moving average with a period of 200 is always a relevant support or resistance zone. Since many large market participants work with averages, these zones are generally reliable in the medium to long-term range.

In the short-term range other averages have become popular, namely the pivot points. It is said that even traders on the floor exchange traded for pivot points.

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## What are pivot points?

A pivot point is an average of the previous day's highs, lows and closing prices. The idea behind this is as follows: If the price drops below this average level the following day, the likelihood of a downward trend is higher. The supply is then more pronounced than the demand. The reverse applies to prices above the average price.

Pivot points are therefore technical indicators that define resistance or support zones. As with almost all indicators, one should take the term zone or area seriously. This is of course a difficulty, because it is questionable where an area begins and where it ends.

In this case, the trader should not be unsettled, and that is why trading is not just about identifying zones but also from the control of the risk. The short-term trend is more likely to intensify - and that's what it's about.

The support and resistance zones are analyzed using a 5-point system. Based on the high / low / close average at the previous day's course, the following support and resistance zones are calculated as follows:

1. P = (H + L + C) / 3
2. S1 = (P x 2) - H
3. R1 = (P x 2) -L
4. S2 = P - (H - L) = P - (R1 - S1)
5. R2 = P + (H - L) = P + (R1 - S1)

Based on these zones, traders can now define their entries or exits. The following example is intended to illustrate how it works. The picture shows the five zones. Upward trends, including downward trends, are more likely to establish above the pivot point.

However, as you can clearly see, prices between the zones can fluctuate extremely. This is also the reason why pivot points are usually used on a short-term basis. With some experience, however, traders can also see very well whether the price is developing more below or above the S and R zones. S and R zones can also be defined as reversal points, at least in the very short second to minute range.

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## How can you pivot Trade binary options points?

There are several ways to trade pivot points with binary options. To do this, however, you first have to know or calculate them. The trader can either use software for technical analysis or use financial information portals. These publish the updated pivot points daily.

In addition, there are various pages that provide a pivot calculator. The dealer then only has to enter the corresponding values ​​on this. The software that draws the zones into the course of the course in addition to the course supply is of course the most convenient.

## Example of trading pivot points

Binary options can be used in many ways via the broker BDSwiss different assets are traded. The hourly pivot point and the R and S zones for the EUR / USD currency pair are currently:

• R1 = 1.1375
• R2 = 1.1387
• P = 1.1355
• S1 = 1.1343
• S2 = 1.3

Because the currency pair is currently in one Uptrend and above the R1 range, one should either trade in the direction of the trend with the target R2 or wait until the trend reverses. After the pivot point has broken down, only puts with targets S1 or S2 should be traded.

### Use pivot points for trading: How to trade binary options

We have trading with pivot points is now explained in more detail, but what should you generally consider when trading? In the following slideshow, we have briefly illustrated what is important and how you can get to the first trade:

## Conclusion

Pivot points are popular technical points Indicators that are used particularly in very liquid assets. However, it is not advisable to focus solely on pivot points when trading, as the reliability of these points has decreased over time. This is partly due to the markets, which have become much more volatile in the past. In conjunction with other confirming indicators such as momentum or the RSI, pivot points and the resulting zones could also indicate reversals at an early stage.