The pivot calculator is defined as a technical indicator that is produced by calculating the numerical average of a particular currency pairs high, low and closing prices.
To calculate pivot points, the pivot point itself will be considered as the primary support/resistance level. Meaning that the largest price movement will occur at this level.
Pivot points can be used in two ways. The first way is to determine the expected overall market trend.
The pivot points are considered as short-term trend indicators, and can be useful for only short term trading “e.g. one day” until its recalculated. The second way is to use pivot price levels to determine when is the best time to enter and exit trades in the market.
Pivot points enable traders to take a look at price levels which are likely to cause an expected price movement.
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