Forex pivot point is a level in which the sentiment of
traders and investors changes from bull to bear or
vice versa. They work simply because many individual
forex traders and investors use and trust them, as
well as bank and institutional traders. It is known to
every trader that the pivot point is an important
measure of strength and weakness of any market.
Floor traders love pivot points. They act as magnet
for price movements.
If you observe how price move during any trading
session, you'll notice that price often stalls or
stops at pivot points before resuming its movement. To
calculate daily forex pivot points you need High, Low,
and Close Price of the previous day. Simply set these
three prices in the Forex Pivot Point Calculator and
it will give the values.
Here are the used formulas for calculating daily pivot
points:
P = (High + Low + Close) / 3;
R1 = 2 * P - Low;
R2 = P + (R1 - S1);

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