Pivot point calculators can be used for several useful purposes when trading many different assets. Whether it is forex, stocks, or cryptocurrency, utilising readily available tools should make up any trading strategy. This includes a forex pivot point calculator, a stock pivot point calculator or a pivot point calculator for day trading.
A pivot point calculator is an effective instrument that calculates pivot points for assets such as stocks by providing the range of available prices from the highest to the lowest. Calculating pivot points will supplement your trading strategy, and using other software at your disposal is also advantageous.
An example of another piece of software that traders use is an automated trading bot. An automated trading bot can automatically buy and sell your asset at your chosen price. However, you must select a high-quality trading bot with top reviews, such as Galileo FX.
Pivot Point Calculator Formula
The standard pivot point calculation model follows the same blueprint across the board. The best pivot point calculator will allow you to easily establish the figures you need to continue trading. Knowing how to calculate pivot points can be tricky, so a pivot point calculator must provide you with the accuracy required to implement your trading strategy effectively. The standard calculator formula is as follows:
Pivot point (PP) = (High + Low + Close) / 3
Support and resistance levels are used as the base of the pivot point using the following calculations:
First-level support and resistance:
First resistance (R1) = (2 x PP) – Low
First support (S1) = (2 x PP) – High
The second level of support and resistance:
Second resistance (R2) = PP + (High – Low)
Second support (S2) = PP – (High – Low)
The third level of support and resistance:
Third resistance (R3) = High + 2(PP – Low)
Third support (S3) = Low – 2(High – PP)
Is A Pivot Points Calculator Effective?
You want to ensure you give yourself the best opportunity to trade with all the correct data. Using a pivot calculator is a good starting point. Pivot calculators remove the possibility of miscalculations, which can lead to an unintentional, poorly timed trade. Where possible, removing the possibility of human error from trading is always recommended. This also applies to other factors affecting your judgement, such as trading on emotion.
An automatic pivot point calculator can be a crucial tool once you learn how they work and how to utilise it in your trading strategy. A pivot point calculator is one of many that can boost your trading strategy and aid you in your quest to execute a profitable trade.
Ensuring that a pivots calculator can assist you in making a trade should be the crucial point to take away from this article today. They are free to use and remove any possible risk from human error and mathematical miscalculations.
Due to the volume of trading tools that are now available online, it is important to settle on a pivot point calculator that can do all of the basic calculations quickly. If it can provide you with no issues and gives you the figures you need to continue your trade, then you are best placed to invest in your chosen asset.