How to Use Pivot Points in TradingView

We just have a quick question here from Paul asking whether we have a specific template that we use for the pivot points. Now Paul, not really, it’s just a standard pivot point. Let me show you which one it is.

Setting Up Pivot Points on TradingView

If you open up your indicators on TradingView, it’s just called “Pivot Point Standard,” so just a standard pivot point indicator. The settings are quite simple as well. If we double-click, you can either have it as a classic or traditional setting; it doesn’t make a big difference. You’ll get fairly the same type of price levels.

Configuring Pivot Points

Practical Tips for Using Pivot Points

It’s really simple, nothing too major, no secret sauce here, just a standard pivot point for some added confluence levels in terms of targets, stop-loss placement, and entries. Of course, we’re using the Average Daily Range (ADR) as well, so it’s just another tool to add to the toolbox. It’s a useful measure for intraday trading as well.

Using Pivot Points for Trading Risk Events

Pivot points are a great technical tool to use around trading risk events. By understanding how to set them up and use them, you can enhance your trading strategy during high-impact economic releases. Here’s a strategy to trade high-impact risk events, using Non-Farm Payrolls (NFP) as an example.

Trading Strategy for Non-Farm Payrolls (NFP)

Step 1: Analyze Federal Reserve Priorities

The first step is to understand what data points the Federal Reserve is currently focused on. If the Fed is focused on this piece of data, then the data point will have a significant amount of volatility because the Fed is in some way basing its interest rate decisions on that data release.

To quickly determine the Fed’s current focus, you can use our Professional Economic Calendar, which includes a fundamental guide. This resource helps traders stay updated on the data points that matter most to the Fed, providing a strategic advantage.

Step 2: Use High-Low Expectation Forecasts

Professional traders rely on high-low forecasts to gauge market expectations accurately. Here’s a more detailed look at why these forecasts are crucial:

Understanding High-Low Forecasts

Economic forecasts are derived from surveys of credible institutions, each providing their best estimate on upcoming data points. Retail calendars typically present the median of these estimates, which can be misleading. The median forecast doesn’t reveal the full range of expectations and, therefore, doesn’t indicate how surprising an actual data release is compared to the extremes of analysts’ projections.

In contrast, professional economic calendars include both high and low estimates. This additional information shows the analysts’ expectations at the extreme ends of their projections. Great trading opportunities arise when data releases fall outside these high and low estimates, creating market shocks that move prices significantly.

Step 3: Choosing the Most Volatile Instrument to Trade

Using insights from institutional reports, traders can select the most responsive currency pairs. For example, if USD/JPY is particularly sensitive to economic data as outlined by the City Economic Surprise Index and NFP shows a significant deviation, this pair could be an ideal target for trading.

Trade Execution Steps

  1. Confirm Fed Focus: Ensure the Federal Reserve is currently emphasizing employment data. If employment is a primary focus, the NFP report will have a higher likelihood of moving the market. Remember, if the central bank is focused on the data point, it’s because they are using that data point to make a decision on rates. This is the reason data points that are focused on cause volatility. Additionally, sometimes the central bank is focused on a data point inside a data point. For instance, the Federal Reserve has often called out average hourly earnings as the key thing they are looking for inside the Non-Farm Payroll report.
  2. Check Forecast Ranges: Before the data release, review the high and low forecast expectations for the event. Plan to trade only if the actual data significantly exceeds the high estimate or falls below the low estimate. This strategy ensures you act on genuinely surprising data and there will most likely be a follow-through reaction.
  3. Monitor Revisions: Check for any conflicting revisions in the data, as these can alter the initial market reaction. Make sure the primary release and any revisions align to support your trade.
  4. Enter Trade Promptly: Once you confirm the deviation, act quickly to enter your trade. Enter within the first 30 seconds. Speed is crucial, as market reactions to significant data surprises happen rapidly.
  5. Set Stop and Take Profit:

Managing the Trade


Pivot points are a powerful technical tool for trading around high-impact risk events. By combining pivot points with a professional trading strategy, you can effectively trade events like the Non-Farm Payrolls. Follow these steps to capitalize on significant economic releases, leveraging the same techniques used by professional traders to maximize your trading opportunities.

If you have any other questions or need further assistance, don’t hesitate to let us know!

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