Trading Spot Forex with Pivot Points
The Pivot Point is a level in which the sentiment of the market changes from bullish to bearish or vice versa. If the market breaks this level to the upside, then the sentiment is said to be positive for that day and it is likely to continue its way up. On the other hand, if the price slips under this level, then the sentiment is considered negative, and it is expected to continue its depretiation. Pivot Points are also expected to provide some kind of support or resistance, and if price can't break any of the associated R or S levels, a possible bounce from it is plausible.
Since the Forex is a 24hr market there is an eternal debate on deciding at which time the open, the close, the high and the low from each 24-hour cycle should be taken. Nevertheless, the majority of traders agree that the most accurate predictions are achieved when the pivot point is adjusted to the GMT or the Eastern (New York - EST) times.