Instructions:
Simply input a currency pairs previous session High, Low and Close price and hit Calculate.
Defined
Used on a daily basis by many successful Forex traders, a Pivot Point Calculator is an arithmetic program used to anticipate price movements, by means of allowing them to pinpoint key resistance and support levels. Such levels provide traders with visual bench marks that can in turn be used to predict price movements.
As arguably the largest and most liquid of financial markets, traders have on the whole agreed that pivot points have proven themselves to be far more effective in currency trading than equities trading.
Mechanics
The pivot point is a level at which the sentiment of the market changes from "bull" to "bear" or vice versa.
Accordingly, if a day's price action begins above the pivot point then the sentiment is said to be a bull market with prices tending to stay above that point until reaching a resistance level (a price that tends to prevent further upward movement).
On the flip side, if a day's pricing action begins below the pivot point, then the sentiment is viewed as being bearish, with prices tending to stay below that point until reaching a support level (a price action point that tends to prevent further downward movement).
Formula
Resistance Level 3 = H + 2*(P-L)
Resistance Level 2 = P + (Res1-Sup1)
Resistance Level 1 = 2 * P - L
Pivot Point = (H + C + L) / 3
Support Level 1= 2 * P - H
Support Level 2= P - (Res1-Sup1)
Support Level 3= L - 2*(H-P)
|
|
|
