What is the pivot point calculation method?

Calculation. Several methods exist for calculating the pivot point (P) of a market.Most commonly, it is the arithmetic average of the high (H), low (L), and closing (C) prices of the market in the prior trading period: [page needed]P = (H + L + C) / 3.

What is the formula for pivot table?

P = High + Low + Close 3 R 1 = ( P × 2 ) − Low R 2 = P + ( High − Low ) S 1 = ( P × 2 ) − High S 2 = P − ( High − Low ) where: P = Pivot point R 1 = Resistance 1 R 2 = Resistance 2 ...

How are pros using pivot points?

Using pivot points strategy provides a solid handicap when using support and resistance levels. The indicator can be used in several ways no matter if you consider yourself a bull or bear. Simple calculations make it easy to follow the trend and identify market conditions to set a limit order, stop losses, or define market entry and exit positions.