What is a pivot point in forex?
- Thread starter PIPruit
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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...
AccuWehHosting
Accuwebhosting Representative
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In forex, a pivot point is a price level, used to determine a currency pair's overall trend. It is often used as a critical support or resistance level, and traders may base their decisions on buying or selling a currency based on whether the price is above or below the pivot point.
Pivot points are calculated using the previous period's high, low, and close prices. There are several methods for calculating pivot points. Still, the five-point system is the most commonly used method, which involves calculating three resistance levels (R1, R2, and R3) and three support levels (S1, S2, and S3).
The pivot point is the primary support/resistance level, with the R1, R2, and R3 levels representing increasing levels of resistance, and the S1, S2, and S3 levels representing increasing levels of support. If the currency pair's price is above the pivot point, it is considered bullish, and if it is below the pivot point, it is considered bearish.
Traders may use pivot points to set entry and exit points for their trades and identify potential areas of support and resistance. Pivot points can be a helpful tool for traders, but it is essential to remember that they are just one of many factors that can impact the price of a currency pair and should not be used in isolation.
Pivot points are calculated using the previous period's high, low, and close prices. There are several methods for calculating pivot points. Still, the five-point system is the most commonly used method, which involves calculating three resistance levels (R1, R2, and R3) and three support levels (S1, S2, and S3).
The pivot point is the primary support/resistance level, with the R1, R2, and R3 levels representing increasing levels of resistance, and the S1, S2, and S3 levels representing increasing levels of support. If the currency pair's price is above the pivot point, it is considered bullish, and if it is below the pivot point, it is considered bearish.
Traders may use pivot points to set entry and exit points for their trades and identify potential areas of support and resistance. Pivot points can be a helpful tool for traders, but it is essential to remember that they are just one of many factors that can impact the price of a currency pair and should not be used in isolation.
One thing to note, you should choose the interval within which you merge pivot points because there are numerous cases when there are higher highs forming within 15 sec or with 1 min and you should choose whether to include last high as pivot point. Sometimes it doesn't makes sense since it makes pivot points graph too complicated.
Georgecasper
Recruit
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In forex trading, a pivot point is a technical analysis indicator that is used to determine the overall trend of the market for a given time period. It is calculated as an average of the high, low, and closing prices of a currency pair from the previous trading day, and then used to determine the key levels of support and resistance for the current trading day. Traders often use pivot points to make decisions about entering or exiting trades, setting stop-loss orders, and determining potential price targets.
Dominic Walsh
Recruit
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A pivot point in Forex trading is a technical analysis indicator used to determine the overall trend of the market over different time frames. It is calculated as an average of the high, low, and close prices of a currency pair and can be used to identify potential levels of support and resistance for the currency. Pivot points are widely used by day traders and short-term traders in Forex markets to make decisions on buying or selling a currency pair.
wellington20
Recruit
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a pivot point is a technical analysis indicator used to identify potential levels of support and resistance in the market. The pivot point is calculated using the high, low, and closing prices of a currency pair from the previous day's trading.
Chadistrading
Private, 1st Class
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Since I could not find any cmpplete and helpful answer, I am going to write mine
A pivot point is a technical analysis indicator used to determine potential support and resistance levels for a given currency pair. Pivot points are calculated based on the previous day's high, low, and closing prices.
A pivot point is a technical analysis indicator used to determine potential support and resistance levels for a given currency pair. Pivot points are calculated based on the previous day's high, low, and closing prices.
Juanstevenson19
Banned
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- 58
Pivot points are technical analysis tools that identify potential levels of support and resistance in an asset's price action. Pivot points calculate the average of the highest, lowest, and closing prices from the previous day, week, or month. They act as reference points for traders to determine whether an asset is likely to trend higher or lower over different time frames. This indicator is handy for day traders to choose their entry and exit point.
ArnavDeshmukh
Private, 1st Class
- Messages
- 46
Pivot points are a type of technical analysis indicator that can be used to identify probable areas of market support and resistance. it is determined using the high, low, and closing prices from the prior day.
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