What is a pivot point in forex?
- Thread starter PIPruit
- Start date
Solution
Pivot points are specific price levels that can help traders predict the future direction of the market. Those price levels (or pivot points) are usually calculated based on the price action from the previous day. A pivot point is simply the average of the highest, lowest, and closing price of the previous day.
The average that is calculated based on various price levels from the previous day is the main pivot point. Other key levels are derived from that main pivot point based on specific formulas. Those other levels represent support and resistance levels that the price could react to. The main pivot point is usually called P whereas the other levels derived from it are called R1, R2, and R3 for resistance, and S1, S2...
The average that is calculated based on various price levels from the previous day is the main pivot point. Other key levels are derived from that main pivot point based on specific formulas. Those other levels represent support and resistance levels that the price could react to. The main pivot point is usually called P whereas the other levels derived from it are called R1, R2, and R3 for resistance, and S1, S2...
Komondar
Sergeant
- Messages
- 196
Pivot point in forex is a technical indicator used to determine potential levels of support and resistance based on the previous day's price action, assisting traders in identifying potential entry and exit points.
Why did the forex trader invite the pivot point to the party? Because they knew it would always provide support and resistance on the dance floor!
Why did the forex trader invite the pivot point to the party? Because they knew it would always provide support and resistance on the dance floor!
ImogenBeaumont
Private, 1st Class
- Messages
- 41
It is an indicator that used to determine the overall trend of the market over different time frames.
CallahanSinclair
Private, 1st Class
- Messages
- 58
they are kind of technical analysis tools that determine potential support and resistance levels.
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