MoneyTec 2.0 - Online Forex Traders & Brokers Social Networking Community » Trading Talk » Beginners Forum

[flockmaster]

I saw "pivots" many times, but I could not understand its meanings. what is the pivot's meanings? Dose the pivot mean central or important point?
I am newbie, any help should be appreciated very much. TIA

[mishak]

Pivot points are prices where some technicians expect daily supports and resistances.
They are calculated by formulas using yesterdays high, low, close prices.

Sometimes they work.

[foroz]

Why don't you use the Search facility here on moneytec? You'll find out a lot of information that way. Type in pivots or pivot points and I'm sure you'll be amazed how many references you get.


Type in Peter Bain as well and you'll find other reference about pivots.



Regards

[forexmaveric]

Here is a common version of the pivot point formula for support & resistance:

Here is the mathematical formula:

P= Pivot point; C= Close: H= High: and L= Low.

The Pivot point number is the sum of the High, Low, Close, divided by three.
P=(H+L+C)/3= pivot point
First resistance level: take the pivot point number times two and then subtract the Low.
(Px2)-L= Resistance 1
Second resistance: take the pivot point number add the High and then subtract the Low.
P+H-L= Resistance 2
First support: take the pivot point number times two and then subtract the High.
(Px2)-H =Support 1
For the second support: take the pivot point number, subtract the High, and then add the Low.
P-H+L= Support 2

Happy trading

[forexmaveric]

The formula I posted is the most common formula used by traders. There are other variations that some traders use to help offset the difference between Night and Day trading sessions. I use the variation below and it accounts for all trading sessions in my calculations beginning from the night session's open until the day session's close. If I am trading the euro fx futures contract at the CME, I take the open-outcry close at 2 p.m. CST. www.cme.com

This Includes all the session data for markets that trade twenty-four hours and accounts for "gaps" in the market prices. The formula below is still the most widely used. One variation that one can use is to include the Open in the calculation. The formula changes to reflect this; for example P=(O+H+L+C)/4. The reason I do not use this method is one needs to wait until the open to make the series of calculations and it does not allow a trader to be prepared before the open of the market. In any case, to use the Open, High, Low and Close method just incorporate that Pivot Point number to the remaining steps shown below.

For the weekly calculations, take the Open from Sunday night or Monday's day session Open and then use the Close on Friday. For the monthly data, take the Open of the first day of the month to the Close of the last day of the month.

Happy trading everyone

[flockmaster]

Originally Posted by forexmaveric

The formula I posted is the most common formula used by traders. There are other variations that some traders use to help offset the difference between Night and Day trading sessions. I use the variation below and it accounts for all trading sessions in

................................session Open and then use the Close on Friday. For the monthly data, take the Open of the first day of the month to the Close of the last day of the month.

Happy trading everyone

thank you very much.
a few of days ago I thought the "pivots" just only is a word which I understand difficultly.

[ravivadina]

hey flockmaster,
i've experienced a very good forex website
*******
i'de love to get tips and advice... adina (ravivadina@walla.com)

{banned for spamming}

[flockmaster]

Originally Posted by ravivadina

hey flockmaster,
i've experienced a very good forex website
*******
i'de love to get tips and advice... adina (ravivadina@walla.com)

{banned for spamming}

thank your a very good website, this website is just a very good website, I'd used to get advice from it, so I will not find other websites.