Forex Pivot Points is a free offline calculator that helps traders and investors determine significant levels in the market sentiment. The tool is readily available for downloading, distribution, and use without any registration.
Floor traders love pivot points because they can act as a magnet for price movements. You might notice that price often stalls or stops at pivot points before resuming its movement. If you want to calculate daily forex pivot points, you need the High, Low, and Close prices of the previous day. You can use the Forex Pivot Point Calculator to calculate the values by putting in these three prices.
The formula used for calculating daily pivot points are:
P = (High + Low + Close) / 3;
R1 = 2 * P – Low;
R2 = P + (R1 – S1);
R3 = High + 2 * (P – Low);
S1 = 2 * P – High;
S2 = P – (R1 – S1);
S3 = Low 2 * (High – P)
As you can see, just by having the previous day's high, low, and close, you eventually end up with seven points, three resistance levels, three support levels, and the actual pivot point. If the market opens above the pivot point, then the bias for the day is long trades. If the market opens below the pivot point, then the bias for the day is for short trades.
The three most important pivot points are R1, S1, and the actual pivot point. The general idea behind trading pivot points is to look for a reversal or break of R1 or S1. When the market reaches R2, R3, or S2, S3, it's already overbought or oversold. Therefore, these levels should be used for exits rather than entries.
Forex Pivot Points calculator is compatible with Microsoft Windows 98/Me/2000/XP/Vista. The program requires Net Framework v2 to run. It's free to download, use, and distribute, and no registration is needed. Overall, if you're searching for a reliable forex trading tool, then Forex Pivot Point Calculator might be the perfect fit for you.
Version 1.0: N/A