Pivot calculator
NOTE: We advise novices read the first articles, which explains the basics of Forex
The pivot points (pivot points) are used to identify levels of support and resistance and are used to operciones in short-term (hours and minutes).
The pivot points, to identify carriers and resistance are used by traders to measure the strength of the trend. On the theory if a pivot point is exceeded without giving any resistance means that the trend is very strong and yet if bounces off the pivot point can be said that the trend is weaker.
Like any resistance and support, the pivot points are considered stronger or weaker to the extent that bounces off the price in their areas of support or resistance.
Finally, you have to make it clear that the pivot points is character of newspaper (not the media and resistance which are longer-term) and because the forex market is 24 hours a day can be set beginning and end of the day. Most software vendors are choosing schedule of the New York Stock Exchange (if you work with a platform, we advise you to find out who measure their time schedule indicators).
The calculations of the pivot points are listed below (daily data):
Pivot Point (PP): (Maximum Minimum + + Close) / 3
What support and resistance levels are calculated as follows:
Prime Support (S1)
Pivot Point (PP) = (+ High Low Close +) / 3
The supports and resistances are calculated using the pivot points:
First level of support and resistance:
First support (S1) = (2 * PP) – Maximum
First resistance (R1) = (2 * PP) – Minimum
Second level of support and resistance:
Second support (S2) = PP – (Maximum – Minimum)
Second resistance (R2) = PP + (Maximum – Minimum)
