Classic Pivot Points
The formula used in the calculation of Classic Pivot Points are:
R4 = R3 + RANGE (same as: PP + RANGE * 3)
R3 = R2 + RANGE (same as: PP + RANGE * 2)
R2 = PP + RANGE
R1 = (2 * PP) - LOW
PP = (HIGH + LOW + CLOSE) / 3
S1 = (2 * PP) - HIGH
S2 = PP - RANGE
S3 = S2 - RANGE (same as: PP - RANGE * 2)
S4 = S3 - RANGE (same as: PP - RANGE * 3)
Where R1 through R4 are Resistance levels 1 to 4, PP is the Pivot Point, S1 through S4 are support levels 1 to 4, RANGE is the
High minus the
Low for the given time frame (usually daily).
|
|
Do you have a trading or investing definition for our dictionary? Click the
Create Definition link to add your
own definition. You will earn 25
bonus reputation points for each defintion that is accepted.
Is this definition wrong? Let us know by posting to the forum
and we will corrent it.
|
