About forex Pivot Points calculator:

The pivot points are the significant levels traders look at to determine directional movement and potential  support/resistance levels.

They use the prior period’s high, low, and close to estimate future support and resistance levels.  Therefore you can use pivot points as leading indicators to generate signals to trade.

 To determine significant daily, weekly, and monthly support and resistance levels, you can use a forex pivot points calculator.

Pivot Points are commonly used by day traders because they work better in fast moving environment with a short-term focus.

Day traders always look at the previous day’s high, low and close to calculate a Pivot Point for the current trading day.

With Pivot Point as the base, further calculations were used to set support 1, support 2, resistance 1, and resistance 2.

You can also use pivot point levels to identify entry and exit levels.

Classic pivot points

The classic pivot points are the most basic and popular type of pivots.

The pivot point is the primary support/resistance level. In other wards, it is the point at which you determine the main trend. First-third level resistance.

The support points serve as additional indicators of possible trend reversal or continuation.

Pivot (P) = (H + L + C) / 3

Resistance (R1) = (2 x P) – L

R2 = P + H – L

R3 = H + 2 x (P – L)

Support (S1) = (2 x P) – H

S2 = P – H + L

S3 = L – 2 x (H – P)

Woodie forex Pivot Points calculator

Woodie’s pivot points are similar to classic pivot points.  The difference is that, you add more weight to the Close price of the previous period.

Pivot (P) = (H + L + 2 x C) / 4

Resistance (R1) = (2 x P) – L

R2 = P + H – L

Support (S1) = (2 x P) – H

S2 = P – H + L

Camarilla pivot points

Camarilla pivot points are a set of eight very probable levels which resemble support and resistance values for a current trend.

The most important is that these pivot points work for all traders and help in setting the right stop-loss and profit-target orders.

R4 = (H – L) x 1.1 / 2 + C

R3 = (H – L) x 1.1 / 4 + C

R2 = (H – L) x 1.1 / 6 + C

R1 = (H – L) x 1.1 / 12 + C

S1 = C – (H – L) x 1.1 / 12

S2 = C – (H – L) x 1.1 / 6

S3 = C – (H – L) x 1.1 / 4

S4 = C – (H – L) x 1.1 / 2

DeMark’s forex pivot points calculator

Another popular method to calculate the pivots to forecast the future of the trend is Tom DeMark’s pivot points.  These are not pivot points exactly, but are the predicted lows and highs of the period.

If Close < Open: X = H + 2 x L + C

If Close > Open: X = 2 x H + L + C

If Close = Open: X = H + L + 2 x C

New High = X / 2 – L

New Low = X / 2 – H

 Why are pivot points important when trading forex.

• You can use pivot points to generate trade signals. Pivot points are leading indicators therefore can be used to identify signals to trade.
• The pivot point levels can show where the market is likely to stabilize or bounce when in an uptrend or downtrend.
• Relying on that, you can easily plan a head and get clear entry point.
• You can also use Pivot points to identify major support and resistance levels in the market. This helps you to know when to enter and exit trade.
• With pivot points you can measure the market sentiment.

Pivot points help you to know whether there are more buyers in the market or sellers. Read more on how to use pivot points to measure market sentiment.

Last but not least, you can use Pivot points to identify reversal or breakout areas.

Read on to find out how to use these support and resistance levels.Read more