Pivot Point Calculator For Forex Trading
Below is A Pivot Poinit Calculator to Help You with Your Forex Trading Levels on Intraday, Daily and Weekly Charts. The forumale used to calculate the pivot points is as follows.
One of the best ways to see how pivots point levels are calculated is to go off an tinker with this pivot point calculator .
The Classic Formulae For Pivot Points is As Follows.
PP = (HIGH + LOW + CLOSE) / 3
S1 = (2 * PP) – HIGH
S2 = PP – RANGE
S3 = S2 – RANGE
R1 = (2 * PP) – LOW
R2 = PP + RANGE
R3 = R2 + RANGE
Calculating the Pivot Point
The classic calculation for the pivot point is pathetically simple. It’s the average of the high, low, and close for the previous day. This classic formula uses the high, low and close from the pit traded session which is also commonly know as the Regular Trading Hours (RTH) session. This time period is used because when pivots were first created this is what the floor traders used.
There are now many variations on this formula. All of the variations that we have seen involve an average of a set of prices that include a combination of yesterday’s open/high/low/close and today’s open. If you limit the input to those 5 figures then there will be a finite number of ways that you can calculate a pivot point based on all the permutations of those 5 figures that you can come up with.
Calculating the support and resistance levels
All of the support and resistance levels are calculated off the pivot point. The pivot point is always the start of these calculations. The classic formulae shown above will allow you to calculate the most common support and resistance levels.
Enjoy