With help of this tool caunted and determined so-called Forex pivot points: options and forex options, futures, commodities, bonds, stocks, and any other investment instruments calculated according to the high low, open and close price of the last trading session.
For the precise calculation you need to choose an appropriate formula, there are a few most frequently used ones.
Pivot point (PP) = (High + Low + Close) / 3
Support and resistance levels are then calculated off the pivot point like so:
First level support and resistance:
- First support (S1) = (2 x PP) – High
- First resistance (R1) = (2 x PP) – Low
- Second level of support and resistance:
- Second resistance (R2) = PP + (High – Low)
- Second support (S2) = PP – (High – Low)
- Third level of support and resistance:
- Third resistance (R3) = High + 2(PP – Low)
- Third support (S3) = Low – 2(High – PP)
With help of GTO Pivot calculator you can easily perform needed calculations.