Pivot Point is generally composed of five lines, namely:
1. Pivot Point Value
2. Support # 1
3. Support # 2
4. Resistance # 1
5. Resistance # 2
I say 'generally' because nothing makes Support & Resistance
up to level 3 (Support # 3 & Resistance # 3), but because the calculations
is not standard, then the Support and Resistance # 3 I did not include in
this book.
Formulas - Pivot Point formula is as follows:
• Pivot Point type 1 (Standard) = (H0 + L0 + C0) / 3
• Pivot Point Type 2 = (H0 + L0 + C0 + O1) / 4
• Pivot Point type 3 = (H0 + L0 + O1) / 3
• Resistance # 1 = (2 x P) - L0
• Resistance # 2 = P + (H0 - L0)
• Support # 1 = (2 x P) - H0
• Support # 2 = P - (H0 - L0)
where:
• P = Pivot Value
• Session H0 = high (Highest Price in the day / period / candle / bar
before)
• Low L0 = Session (Lowest Prices on the day / period / candle / bar
before)
• C0 = Session Settlement (Closing Price on the day / period / candle /
the previous bar)
• O1 = Next Open (Open Price on the day / period / candle / bar
now)
For the price movements that often occur a considerable gap between
period from one to another, the calculation suggests Person Pivot
Point type 2 and type 3.
Keep in mind that the Pivot Point is calculated from the current price /
time ago to get support and resistance day / time is now.
For example, if you want to see the movement today, then you
requires price data (Open - High - Low - Close) on the day yesterday. if
you want to see the movement of the price of one hour forward, you need
price data per one hour today.
Currently, there are some technical analysis software that can automatically
calculate the Pivot Point so you do not need to bother to count them
manually. But usually the software is limited to the calculation
Pivot Point on a daily and weekly. There is also a special calculator software
to menghitunga Pivot Point, so you just simply enter the data
Open Price - High - Low - Close, then the software directly
demonstrated its value and its Pivot Point Support and Resistance level one
and its two levels.
Selasa, 06 Desember 2011
Pivot Point Calculation
