The Forex pivots technique is one of the preferred methods of most traders to determine when to enter the market, place stops or limits and take profits. The pivots were originally employed by floor traders and then the technique became popular.
Forex pivot point is a technical analysis indicator used to determine the general trend of the market over different time frames.
The pivot point is the average of the high, low and closing process from the previous day of trading. Usually the pivot point is used in a combination with calculating support and resistance levels.
How to calculate Forex pivots? Pivot points can be calculated for any time frame. That is, the previous day's prices are used to calculate the pivot point for the current trading day.
The next formula is for calculating the pivot point with the standard method:
Pivot Point (P) = (High + Low + Close)/3
Then the pivot point can be used to calculate the support and resistances:
Support 1 (S1) = (P x 2) – High
Support 2 (S2) = P – (High – Low)
Resistance 1 (R1) = (P x 2) – Low
Resistance 2 (R2) = P + (High – Low)
There are other formulas for calculating pivots; such as Fibonacci, Demark, and Camarilla among others.
The good news is that it is not necessary to calculate the Forex pivots every time you need to use them; most trading platforms offer the option to place the pivots before starting to trade. Also, many websites offer calculators where it is possible to introduce the information.
Tradeview Forex offers the calculators as well as the tables where you can find the pivot points for different time frames for main currency pairs; such as hourly, four hours, daily, weekly and monthly. Each time frame can be done with different methods which include standard, camarilla, woodie’s among others; so it is not necessary to introduce any information since the tables display all the information
Visit Tradeview and find more information at: https://www.tradeviewforex.com/pivots-calculators.php