Pivot points is a very important concept that a very few forex traders use to calculate current day’s support and resistance values using previous days trading range like high, low and close values. Not only for daily resistance and support lines but forex traders also use the weekly and monthly trading ranges (last weeks high, low and close values to calculate the weekly pivot points and last months high, low and close values to calculate the monthly pivot points). In this video the basics of pivot points like what are pivot points, how to calculate them, why to use pivot points, different methods of calculating pivot points, common method of calculating pivot points etc are shown. In this video a technical indicator is also shown to calculate pivot points dynamically instead of manually.
The most common method of calculating pivot points is using a 5 point system. The 5 points are pivot line, support 1, support 2, resistance 1 and resistance 2. This video shows how to use this method to calculate pivot points.
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