Professional traders and brokers use pivot points to identify key support and resistance levels. Pivot point would be another word for pivot (Pivot Point), on a FOREX chart it is a price level around which the prices have moved in a certain period of time. Put simply, pivots and the associated support and resistance levels are, Areas where the direction of a price movement may change.

One of the most fundamental decisions for a trader, is the choice of time frame. What I want to say is, You should plan to keep your positions open over how long you plan to keep your positions open. This time span can range from a few seconds to several months. A too small time window is often not manageable for the beginner, but especially beginners often do not have the necessary patience to trade in a larger time frame.

In this chapter we deal with tools, that help you anticipate future price movements. There are many types of chart indicators, we will discuss the most common ones here. In practice, however, we advise you, that you specialize in one to a maximum of three indicators, more confuse only.

We are looking forward to, that you have made it this far. In high school we are and with trading systems, Money Management and Personalities of FOREX Traders. With the completion of high school you should definitely have the basic knowledge to take the first steps on the foreign exchange market with a FOREX broker that we recommend.

The focus of this chapter is on, Help you develop your own trading system. It won't take much time to create a system, testing the system then takes a little longer. You should still be patient, with a good trading system you can earn a lot of money. The process of developing a trading system can be divided into six steps…

This chapter should give you an idea of it, what a trading system should look like and what you need to look out for when developing your own trading system.