[Soultrader]

Technical indicators such as stochastics and the RSI can be applied to confirm pivot point setups.

When price reaches a pivot point, look for candlestick patterns such as doji's, shooting stars, harami's and engulfing patterns. This can add further confirmation to a pivot point setup.

If you trade with indicators, you can look for bullish and bearish convergence/divergence using the stochastics or RSI.

I do no trade with indicators or watch for certain candlestick patterns, however, one powerful trading setup that I have noticed recently occurs when pivots cluster up with technical price patterns. For example, in a head-n-shoulders pattern, if the neckline is in line with a pivot point this can offer a high probability trading setup.

When the breakout resistance level of an ascending triangle is in line with a pivot, this also offers a high probability trading opportunity.

If you are currently trading with indicators only and want to learn to trade with pivots, plot the pivot points and see if your indicators offer clues when price reaches the pivots. The more confirmation you get from the markets, the higher the odds are for a successful trade.