Pivot Points

This material is actually not too interesting to be discussed.But somehow many asking what it's pivot points. May indeed be useful. So finally learn Forex feels the need to integrate it in our school curricula concerning the request that extends from time to time.

The lesson is the name of the Pivot Points.

Pivot Points calculation is a way to determine the areas of support and ressisatance. He does not belong to an indicator, but still arguably as branches of technical analysis because of a mutual decision based on a projection of the past. Consider the following formula:

Pivot point = (H + L + C + O)/4

R1 = (2 x P) – L

R2 = P + (H-L)

S1 = (2 x P) – H

S2 = P – (H-L)

The above formula is the formula in the calculation of the use Ressistance Support pivot points. Is O, H, L, C and P in a row is an Open, High, Low, Close and Pivot on a candlestick chart. R and S is a Ressistance and Support. In contrast to the soup and ress using price history, on a Pivot point, we can use the ress coated soup and even up to a couple of times. Let's look at an example of the calculation are:

The following are the data O, H, L, C from the period H1 GBPUSD

Open	1,6349
High	1,6349
Low	1,6310
Close	1,6331

 

Then Pivot point calculations thus becomes:

P = (O + H + L + C)/4

P = (1.9984 + 1.9991 + 1.9874 + 1.9900)/4

P = 1,9937

Well Sup and thus Res can be determined as follows:

Sup 1 = (2 x P) – H

Sup 1 = (2 x 1,937 – 1.9991

Sup 1 = 1.9884

Sup and 2 is:

Sup 2 = P – (H-L)

Sup 2 = 1.9937 – (1.9991 – 1.9874)

Sup 2 = 1.9820

Ress 1:

RES 1 = (2 x P) – L

RES 1 = (2 x 1.9937) – 1.9874

RES 1 = 2.0001

Ress 2:

Ress 2 = P + (H-L)

Ress 1.9937 + 2 = (1.9991 – 1.9874)

Ress 2 = 2.0064

 

With the graph, the display will be as follows:

 

OK, now how do I use? In fact we have been discussing how to price behavior when approaching point soup and his res. But for the sake of ease You, here we summarize the usefulness of Pivot point:

- When the price approaches a Support point, chances are the price will turn back up or if the trend goes down too strong, then prices will trend down to pass through and be more powerful

- If the price approaches the point of ressistance then prices will come back down away from the point of resistance, but if the trend of rising far too strong (usually because the fundamental issue) then the price will be translucent dots ressistance to then go up much further.

 

The next question is how accurate point of support and use ressistance using pivot point? Hmm ... a tough question. The key to a pivot point inaccuracies are making a point of High, Low and Close the right according to the history that happened. Many of the traders are modifying their Pivot in such a way so that it no longer uses the H, L, C, and O at the previous candle but could be just a couple of the previous candle summarized into one. Other traders modify pivot formulas so that according to the way of their trading.

So far the Pivot used is quite widespread in daily trading. The fit is also quite passable. The difficulties that occur in a life is on the pivot frequently need to enter this formula and it did. For Your mempremudah, use Excel in defining the point P, soup and Res so you simply enter the number H, L, C and O only.

One thing to keep in mind, potent enough to Pivot when the price is being affected not news or issues a strong fundamental. The news emerged and price volatility became a routine but no more likely to move because of the irregular supply demmand, Pivot became less effective so it would be better to switch to the calculations of the soup and Res psychologically not technically as the Pivot Point.

On the CD there are our Premium Forex pivot calculator that can calculate point soup and Res up to three levels. If perhaps you are interested in having it, please order the product section on this website. Well, you got what you've paid. The price may be quite adequate, but not at all when viewed from the science and the ease with which you are getting so You avoid loss in real trading account. How much loss that may occur due to lack of knowledge and skill are we? It is better to learn from who has been through it instead? Well if so Premium CD is suitable for you. Not a promotion lho, just advertise it. ...