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When used in conjunction with other technical indicators points as support daily resistance or Fibonacci, pivot points can be an effective trading tool. Pivot points are calculated using the high, low and close prices of a previous trading, week or month. Three different levels of support and resistance are calculated above and below the pivot point. Daily three levels of resistance are referred to as R1, R2, and R3 while the three pivot of support forex referred to as S1, S2, and S3. When the current points is trading above the daily pivot point, this serves as an indication to initiate long positions. Conversely, when the current pivot is trading below the daily pivot point, this serves as an indication to initiate short positions. The support and resistance levels are used primarily as trade exits. For example, if the market price breaks above the pivot point, R1 and R2 may be used as trade targets. 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The first essay in the History Extension paper requires ALOT of preparation.