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Pivot Point Calculator

Forex Pivot Point Calculator

To calculate the Pivot point plus three resistance and three support levels, input previous period's High, Close and Low prices (you can construct the pivot points on any time frame, the more relevant ones are from longer time frames (1 hr+). I personally prefer daily pivot points), then press the button "Calculate!".

High
Low
Close

 
      Resistance 3
    Resistance 2
 
  Resistance 1
   
 Pivot Point
     
  Support 1
   
    Support 2
 
      Support 3
 


Pivot point analysis

Basic forex pivot point trading is based on two prevailing tendencies. If a day’s price action begins above the pivot point, prices will tend to stay above that point (fulcrum) until it reaches a resistance point. Conversely, if a day’s pricing action begins below the pivot point, the price will tend to stay below that point until it reaches a support point. A resistance level is a price that tends to prevent further upward movement. A support price is a price action point that tends to prevent further downward movement.

In its simplest form pivot point trading is based on these two tendencies and is also knows as "trading between the lines". The most popular and hence the most successful form of pivot trading is based on reversals. Simply put, when price approaches a pivot above, a trader waits for a reversal at that point and sells. The opposite is true when price action is moving downward. The patient pivot trader waits for a bounce off the pivot of support and places an order to buy.

If the market opens or later trades at the extremes R2 or S2, pricing will exhibit a tendency to trade back toward the pivot point. Hence, traders tend to avoid buying high (at R2) or selling at the low (S2). The wisdom of this is even greater the further the price moves away from the day’s pivot point



RECOMMENDED BOOKS
A Complete Guide to Technical Trading TacticsA Complete Guide to Technical Trading Tactics:
How to Profit Using Pivot Points, Candlesticks & Other Indicators


by John Wiley & Sons

The Complete Guide to Technical Trading Tactics outlines a variety of proven methodologies-pivot points, candlesticks, and other top indicators-so readers may use those that work best for them as well as make their own trading decisions without a second thought. Author John Person also shares his insights on a variety of trading technologies that will allow readers to gain a competitive edge in the market.
Candlestick and Pivot Point TradingCandlestick and Pivot Point Trading Triggers + CD-ROM: Setups for Stock, Forex, and Futures Markets (Hardcover)

by John Wiley & Sons

In Candlestick and Pivot Point Trading Triggers, author and financial expert John Person discusses the method of using a pivot point moving average approach, combining the use of candlestick charting methods, that will allow readers to improve their overall trading performance. This book also illustrates how to incorporate set-ups and triggers based on the common elements in technical analysis that all traders have equal access to.
TECHNICAL ANALAYSIS TOOLS
Fibonacci Calculator

Pivot Point Calculator

Indicators
(Oscillators, eg: Relative Strength Index RSI)

Number theory
(Fibonacci numbers, Gann numbers)

Waves
(Elliott wave theory)

Gaps
(High-Low, Open-Closing)

Trends
(Following Moving Average)

Chart formations
(Triangles, Head & Shoulders, Channels)
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