Pivot Point Calculator
Apply the Pivot Point Calculator’s results to the interactive Live Price Charts.
Use MiladFX easy-to-use Pivot Point Calculator to determine the next day pivot level as well as an instrument’s three levels of support and resistance. With the Pivot Point trading approach, you may easily calculate the next day’s trading levels.
What is a Pivot Point Calculator, and how does it work?
The total of an instrument’s previous trading day high, close, and low prices, divided by three, is the pivot point on a price chart. If the instrument’s price is below the pivot point level the following trading session, it may indicate an ongoing downtrend, but if the instrument’s price is above the pivot point level, it may indicate an ongoing uptrend.
The pivot point calculating formula for a financial instrument is (High+Low+Close)/3, which maps out the pivot point levels, which include the pivot level and three levels of price support and resistance. These price levels can be traded in the same manner that ordinary support and resistance levels and trendlines can be traded, with a mix of breakout and bounce trading tactics.
The pivot point approach has a significant advantage in that it is widely used, with many traders, including large institutional professional traders, using the same levels based on the same formula. Pivot point methods are popular because they are predictive rather than lagging levels. Several traders utilise the previous trading day’s price computations to determine potential reversal points, or breakout levels, for the current trading session.
MiladFX Pivot Point Calculator will precisely determine the pivot point, three resistance price levels, and three support price levels of any financial instrument’s price. The pivot point (PP), the first level of resistance (R1), and the first level of support (S1) are the three most typical levels (S1).
How can I use Pivot Point Calculator for trading?
Traders can choose from four distinct pivot point calculating methods in this field. The number of levels evaluated and displayed differs across the four distinct calculating methods:
The standard approach has seven levels, ranging from R3 to S3.
The Woodie system has five levels, spanning from R2 to S2.
The camarilla method has nine levels, spanning from R4 to S4.
The DeMark approach requires the asset’s opening price and only calculates two levels, R1 and S1.
Let’s imagine want to figure out the pivot points for the EUR/USD for the upcoming trading session. To begin, I’m use the Standard computation approach in my example.
High price: In this area, I input the EUR/USD pair’s highest price from the previous trading session, such as 1.20552.
Low price: Using the same format as the previous field, I input the EUR/USD pair’s lowest price from the previous trading session, for example 1.19653.
Finally, I’m enter the EUR/USD pair’s closing price from the previous trading session, for example 1.20154.
I’m now press the “Calculate” button.
The following are the outcomes: For the next trading session, the Pivot Point Calculator (in Standard mode) will calculate and display the 7 pivot levels for the EUR/USD pair. The next day’s PP level will be 1.2012, and the three support levels will be 1.1969 (S1), 1.1922 (S2), and 1.1879 (S3) (S3). 1.2059 (R1), 1.2102 (R2), and 1.2149 (R3) will be the three resistance levels (R3).
Note: The pivot point trading method can produce positive returns, and it is a non-lagging price action trading strategy that is used by a number of expert traders. However, several retail FX brokers’ data servers are located in different time zones than the real market hours, therefore charting/prices on a trader’s personal trading terminal may differ from global market prices.
The data needed for the calculations in an efficient pivot point strategy should be retrieved from an asset’s worldwide market trading hours, so that the prices employed (high, low, and close) match the price data from the global market.