Bookmark This Page Make Forex-Market Your Homepage
HOME
Home
For Beginners
    Introduction to Forex  
    How to Read Quotes  
    Forex Books  
    Forex Terms  
    Currency Trading Rules  
    Free Demo Account  
Market Reports
    Reuters  
    Bloomberg  
    Saxo Bank  
    Scotia Capital  
    Mellon Bank  
    Rabobank International  
    Union Bank of California  
    Mizuho Corporate Bank  
UBS
Trading Tools
    Pip Value Calculator  
    Fibonacci Calculator  
    Pivot Point Calculator  
    Forex Charts & Quotes  
    Financial News  
    Currency Converter  
    Regulatory Agencies  
    Economic Calendar  
Forex Brokers
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 days 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 days 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 days pivot point

 
Forex Books
 
There are forex books available for all levels of learning needs, for beginners, intermediate-level traders, and professional traders.
 
Forex Books
Forex Links
Our Partners
Forex Books
Trading Software
Fibo-Forex
 
 
Forex Software | Forex Books | Forex Brokers list

(C) 2004-2006 Forex-Market.net All rights reserved