What is a pivot point in forex?

[PIPruit]

Let's keep reviewing the trading concepts. What is a pivot point in forex?

 

[PatriciaBaldwin]

That's a very good question. I even don't know much about it. But I would like to learn more about pivot point. Thank you so much!

 

[Adrian_br]

Thanks for this useful post, as a trader we do all these things but rarely know the exact terminology. Good post

 

[forexinmind]

Pivot points are used as a predictive indicator and denote levels of technical significance. When used in conjunction with other technical indicators such as support and resistance or Fibonacci, pivot points can be an effective trading tool.

 

[jenny0410]

pivot points are the important points that determine the direction of the market. These points can be major points of resistance and support which could trigger a price continuation or reversal

 

[7Bulletin]

A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the intraday high and low, and the closing price from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment. You also need to know how to calculate it and various formulas, so I advice you to apply to specialized services, where everything is described in order to understand this term.

 

[TareqS]

Pivot points are very useful for trading. There are some indicators that define pivot points. Many traders trade relying only on Pivot points as well. Thanks for the post.

 

[reece Rispoli]

Let's keep reviewing the trading concepts. What is a pivot point in forex?

basically support and resistance levels usually you would have 3 supports and 3 resistance levels, pivot point itself is an area that is either closer to support or resistance.

 

[bigdolly]

Is there any software that helps to determine pivot points in crypto? Where can I download it?

 

[PaulaS14]

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.

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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, and S3 for support.

The main pivot point represents the key level for establishing a bias. If the price is above it, the bias is bullish (to the upside), and if the price is below it, the bias is bearish (to the downside). If the price goes through the pivot point decisively to the downside, the bias changes from bullish to bearish, and vice versa.

Most platforms have a pivot points indicator, which displays those levels easily. You can also install a pivot point add-on to your platform for the same purpose if you do not find the indicator.

Pivot points can be used as standalone guidelines or as tools that help with other indicators. It depends on your style as a trader.

Thanks for the information.

 

[Nanan]

A pivot point is characterized as a market turning point, I am sure this is the correct answer.