Using Pivot points to determine market sentiment

Pivot Points are interesting because they can be used to assess the market sentiment of the foreign exchange markets. A pivot point is that line which tells us when market sentiment changes from "bullish" to "bearish" or the other way around. These points tell you if the sentiment has shifted from being positive or long to negative or short.

Pivot point works as a filter for you in telling you about the mood of the majority investors at that point. You should only buy if the price action is above the pivot point. And you should only sell if the price action is below.

These points will help you determine the entry and exit for each position. They can also be used in conjunction with other technical methods.

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