Before calculating pivot points, you will first find your high, low and close for the particular currency pair you intend to analyze. If you are a day trader, you high, close and low should be the previous day’s data while a weekly trader will use that of the previous week. To do this, simply open and login into your Meta trader platform, go to tools, click on history center, click on forex, click on the currency pair you intend to find, click on daily, click on import and ‘ok’ it. Or simply press ‘F2’ on your computer keyboard when your Meta trader platform is on.
Pivot points could be calculated using the following formulas:
Resistance3=High+2*(Pivot-Low)
Resistance2=Pivot+(R1-S1)
Resistance1=2*Pivot-Low
PivotPoint=(High+Close+Low)/3
Support1=2*Pivot-High
Support2=Pivot-(R1-S1)
Support 3 = Low - 2*(High - Pivot)
Also, pivot points calculators could be found online. To search for them, simply enter “forex pivot
Point calculator” into your google search bar, when the results appear, click on any of it. Enter your high, close and low data. Click ‘calculate’ and your pivot points will be automatically calculated.
I will end this article here and continue from here in the next edition. In the next edition, we will be looking at the pivot point trading strategy; when to enter a trade, how to place take profit and stop loss orders, etc. please, do not miss the next edition because this is just a tip of the iceberg when it comes to pivot point trading strategy. For your information, pivot points analysis is one of the most popular and best forex trading strategy. If you trade forex and don’t know how to use this strategy, you are still gambling. Goodbye and see you in the next edition.
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