Forex Pivot Point Calculators

Pivot point has been used as trading strategy for a long time. The traders used this method to have some idea on the direction of the market with a few simple calculations.

The forex pivot point is the level at which the market direction changes for the day. It uses simple arithmetical formulas and the previous days high, low, and close, to derive a series of points.

These points can provide critical support and resistance levels. The pivot level, support, and resistance levels calculated from these are collectively known as pivot levels.

The reason forex pivot points are so popular is that they are predictive of the market. You can use the information of the previous day to calculate potential turning points for the current day. As many forex traders follow pivot points, the market often reacts at these levels.

Pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa. Calculating the forex pivot is extremely easy. You will find many online forex pivot calculators with which you can get the pivot points almost instantaneously. A very simple formula may look like:

Resistance 3 = High + 2 ´ (Pivot – Low)
Resistance 2 = Pivot + (R1 – S1)
Resistance 1 = 2 ´ Pivot – Low
Pivot Point = (High + Close + Low )/3
Support 1 = 2 ´ Pivot – High
Support 2 = Pivot – (R1 – S1)
Support 3 = Low – 2 ´ (High – Pivot)

So by following this forex pivot calculator, if you have
High - 1.2297
Low - 1.2213
Close - 1.2249

This will give you:

Resistance 3 = 1.2377
Resistance 2 = 1.2337
Resistance 1 = 1.2293
Pivot Point = 1.2253
Support 1 = 1.2209
Support 2 = 1.2169
Support 3 = 1.2125

So, if you have the previous days high, low, and close, you can get 7 points: 3 resistance levels, 3 support levels, and the actual pivot point. If the market opens above the pivot point, then it indicates a long trade for the day. If the market opens below the pivot point, then it calls for short trades.

Pivot points are one of the commonly used triggers for trading systems. When you have a forex pivot calculator with you, it helps greatly in your trading.

Since the forex market is a market that has no close or open, there is an eternal battle on deciding at which time we should take the open, close, high, and low from each session. The most logical idea would be to take the open at 00:00 GMT and the close at 23:59 GMT.

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