What are Pivot Points?
Pivot points are technical indicators used to calculate support and resistance levels for that trading day. The major application of them is in forex market, but also available for stocks and derivatives. They are pretty easy to derive and follow, and can be used as a resistance or support level simultaneously according to market trends.
Pivot point calculating methods vary considerably. The standard formula uses yesterdays high (H), low (L) and closing (C) prices to calculate pivot point (PP).
Pivot points include pivot point and two or three supporting and resistance levels. The supporting and resisting levels are calculated by the following formulas.
This information is provided by NobleTrading.com, a worldwide brokerage firm, offering direct access services for online stocks trading, options trading, futures trading, commodities trading and forex trading on a variety of trading software platform.
Pivot point calculating methods vary considerably. The standard formula uses yesterdays high (H), low (L) and closing (C) prices to calculate pivot point (PP).
- PP = (H + L + C / 3)
Pivot points include pivot point and two or three supporting and resistance levels. The supporting and resisting levels are calculated by the following formulas.
- Resistance1 or R1 = (PP x 2) – L
- Support 1 or S1 = (PP x 2) – H
- Resistance2 or R2 = PP + (H - L) or PP + (R1 – S1)
- Support 2 or S2 = PP - (H - L) or PP - (R1 – S1)
This information is provided by NobleTrading.com, a worldwide brokerage firm, offering direct access services for online stocks trading, options trading, futures trading, commodities trading and forex trading on a variety of trading software platform.
posted by NobleTrading at
3:08 AM
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