Pivot points

Pivot point is arithmetic calculation result which used traders to determine Support level and Resistance level as guide tool, however pivot point is still included technical analysis branch due to based of previous prices projection.

Pivot point analysis
According to analysis pivot point has two tendencies, if daily open price openned at above pivot point , then the prices always above that point till touch the ressistance line, otherwise if daily open price openned at under pivot points, then the prices always there untill touch the support line. when it is not afford to through Ressistance 1 then it will tend back to Support 1. otherwise when it is not afford to through support 1 then it will tend to Ressistance 1.

Ressistance is the point above pivot point where the price tend moves back when touch or close this line. support is the point under the pivot points where the price touch or close this line will tend go back moves up.

If the market openned at or near R2 or S2 then the price tend go back moves to pivot point.

Pivot points calculation
The calculation of pivot points is based of H,L,O,C (High,Low,Open,Close) prices which get from average yesterday data, its for daily pivot, but for weekly pivot you can get weekly average data.



In marketiva account you can get the data by candlestick chart style in daily timeframe,
get the previous candle and measure H,L,C,O as image above, one up candestick and other down candlestick.

Forex market openned 24 hours the closing market usually based on Eastern time (EST) at 5.00 pm or 24.00 wib.

At the formula bellow H=High price, L=Low price , C=Close O=Open at yesterday session.

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

Resistance Level 1 = (2*PP)-L
Support Level 1 = (2*PP)-H

Resistance Level 2 = (PP-S1) + R1
Support Level 2 = PP – (R1 – S1)

Resistance Level 3 = (PP-S2)+R2
Support Level 3 = PP – (R2-S2)


middle point as:

M1= (S2+S1)/2
M2= (S1+PP)/2
M3 = (R1+PP)/2
M4 = (R2+R1)/2