What is a Pivot Point?
A pivot point is the price used as a technical analysis tool. It is used by expert traders while trading in Stock, Currency, Forex or Cryptocurrency Market.
It is the point where buyers and sellers psychology changes. It is the major Support and Resistance Level.
If the spot price keeps below the pivot point, it is treated as a sign of bearish trend.
If the spot price is above the pivot point, it is a sign of bullish trend.
A pivot point can be monthly, weekly, daily, hourly or any other time-frame selected in the chart.
Normally, daily pivot point is used for intra-day trading. But shorter time-frames pivot points can also be used for intra-day trading.
Weekly or Monthly pivot points are used for longer time-frames trading.
How is Pivot Point Calculated?
To calculate Pivot Point of any stock, currency or any other trading instrument, we need three prices of previous trading bar.
-High Price (H)
-Low Price (L)
-Close Price (C)
All above prices are taken of previous bar to calculate the pivot point.
Formula for calculating the pivot point: –
Pivot Point = (H + L + C)/3
So, pivot point is average of the sum of high, low, close prices of the previous bar.
How to automatically draw pivot point on the chart?
For showing the pivot points automatically on the chart, we need live advance chart/ live streaming chart.
-Select the Bar Chart or Candle Chart.
-Then we need to insert Moving Average technical indicator.
– Move to the setting of Moving Average and select input.
– Change Length to 1, Source to hlc3 and Offset to 1.
– Press OK.
Now, It will automatically draw pivot point for the every closed bar.
Online Pivot Point Calculator
Here is the ultimate & powerful online pivot point calculator.
You can calculate major & minor pivot points, support & resistance levels by entering Previous Bar or day high, low, close and open prices.
This calculator will help you in successfully trading of stocks, forex and cryptocurrency.
You will get pivot points on the basis of Classic, Woodie’s, Camarilla and DeMark’s formulas.