Forex Pivot Point Calculators

In the Forex trading the technique of Pivot has been used for an extended time period. The trader used to apply this strategy to develop a thought process on the market path with the help of some easy computations

Forex Pivot Point

The Forex pivot point is actually the echelon where the path of market alters for a particular day. This is calculated with the application of easy arithmetic formulas. Besides this, the preceding day’s high, low and close points are also taken into consideration

These points can offer decisive support and resistance levels. Hence the pivot level, support and resistance levels computed with the help of these points jointly denoted by the terminology of pivot points.

Popularity of Pivot Points in Forex Market

The pivot points are well liked in the Forex trading market, because they offer the market prognosis.

You can apply the preceding day details to compute the prospective turning points on the existing day. Since large number of traders track these pivot points, hence the market generally respond at these levels.

Forex Pivot Calculator

Pivot point can be considered as an echelon where the traders response alters from bull to bear (bull and bear are the market terms to depict high and low activity). The computation of Forex pivot is not difficult at all. In fact, you will be able to locate a number of pivot calculators available on internet. With the help of these calculators, you can very quickly calculate the pivot point. The formula to compute pivot point is pretty easy

Resistance 3 = High + 2 ´ (Pivot – Low)
Resistance 2 = Pivot + (R1 – S1)
Resistance 1 = 2 ´ Pivot – Low
Pivot Point = (High + Close + Low )/3
Support 1 = 2 ´ Pivot – High
Support 2 = Pivot – (R1 – S1)
Support 3 = Low – 2 ´ (High – Pivot)

Hence, with the help of this Forex pivot calculator, if you have the following points

High Point: 1.2297
Low Point: 1.2213
Close Point: 1.2249

You will get the following figures with the above given formula

Resistance 3 = 1.2377
Resistance 2 = 1.2337
Resistance 1 = 1.2293
Pivot Point = 1.2253
Support 1 = 1.2209
Support 2 = 1.2169
Support 3 = 1.2125

What does it indicate?

Keeping in view the above, if you acquire the preceding day’s high, low and close levels, you will obtain 7 points, i.e. three support levels, three resistance levels and one actual pivot point. If the market starts at more than the pivot point, then it signifies an extensive trading activity for that day. If market starts less than the pivot point, then short trades can be predicted on that day

Pivot points are the frequently utilized initiators for trading systems. If you have Forex pivot calculator, then you will find a great deal of assistance in your trading activities.

The Forex market has no specific opening or closing times; hence the most practical solution to consider the opening of market at 00:00 GMT (Greenwich Mean Time) and closing at 23:59 GMT.

Posted in: forex