Forex Dictionary Terms

Fulcrum Point

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Definition – What does Fulcrum Point mean?

The fulcrum point is a point of inflection or congestion on a graph where the trend changes direction. Fulcrum point is basically a more formal way of saying turning point. Like any reversal, it is not always clear whether the fulcrum point in a currency pair’s price action is real or simply a false breakout.

ForexTerms explains Fulcrum Point

The fulcrum point is to forex charts what the TSN turning point is to sports. The fulcrum point can only be positively identified after the fact because there is always the possibility of a false signal. The fifty-percent rule gives one example where a fulcrum point may just be a hiccup before the trend continues. Traders and technical analysts are always looking for a way to identify fulcrum points in advance.

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