Pivot Points Calculator

A pivot calculator is used in technical analysis to determine support and resistance levels for currencies and stocks. It calculates the main pivot point based on the high, low, and closing prices that serving as a key price reversal level.

It also gives multiple support and resistance levels from the main pivot point, helping traders monitor price movements.

Using the FXLeaders' Pivot point calculator can effectively enhance your trading analysis.

A pivot point calculator is quite significant in forex trading because it identifies the key support and resistance levels, aiding traders in making better trading decisions. These levels determines potential price reversals, allowing effective entry and exit points. Pivot points also provide insights into market trends, where prices above the pivot suggest a bullish trend or bearish trend. Additionally, they help with risk management by highlighting areas for stop-loss orders, ultimately enhancing trading strategies and increasing the likelihood of successful trades.

Pivot points are calculated using the previous trading period’s highs, lows, and closing prices. The primary pivot point is the average of these values. From the pivot point, the first resistance level is identified by adjusting for the low price, while the first support level is adjusted for the high price. The pivot points then identify the key price levels where the market may change direction, making it easier to make informed trading decisions.