August 18 – A fulcrum is a point where a lever rests, or a point where it will pivot. We can apply this concept to trading by finding levels areas where a balance of bullish and bearish sentiment exists. Once the bulls or bears take control, the fulcrum in the market loses balance and one of those groups drive price decisively in one direction of the other.
A fulcrum can be any market structure where balance exists. We would normally think of a support/resistance level as a fulcrum. Fulcrums can also exist in consolidations as well as pivot points. Fulcrums allow us to see what the market gives us and then taking advantage of the move once the bull/bear balance ceases to exist.
Learn more about Nirvana's plugin, The Fulcrum Module: https://bit.ly/3k0b5jF
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