The article addresses the issue of the pivot points calculated. Different pivot points are simple folk instruments and technical analysis in forex market operations. In this article, the rules for floor, Tom Denmark, Woodies and Camarilla pivot points are described. The following article will be useful for all Forex traders who want to be more familiar with technical analysis generic.
The axes of the floor (the most basic and popular type of pivots) are widely used in the analysis of technical change operations. The main objective of a turning point is to represent a first level of support / resistance - the point at which the trend can be bullish or bearish. The levels of resistance and support (from first to third) serve as additional points of possible outbreaks trend or trends limits. These are the rules to calculate floor pivot points:
The pivot (P) = (H + L + C) / 3
Resistance (R1) = (2 x P) - L
R2 = P + H - L
R3 = H + 2 x (P - L)
Support (S1) = (2 x P) - H
S2 = P - H + L
S3 = L - 2 X (H - P)
Tom DeMark pivot points are not as popular as floor pivots, but it is even easier and can be used to determine the range of a broker trading period now with the High, Low and Close values of the previous period and the normal value a current period. To calculate DeMark pivot points can use the following rules:
If <Close Opencurrent Then X = H + L 2 X + C;
If> Close Opencurrent Then X = X 2 H + L + C;
If Close = Opencurrent Then X = H + L + 2 XC;
New A = X / 2 - New Low L = X / 2 - H
Another way to calculate the pivot points are Woodie pivot points. They are very similar to floor pivot points, but are calculated giving more weight to the closing price of the previous time period. The rules for calculating Woodie pivot points are:
The pivot (P) = (H + L + 2 x C) / 4
Resistance (R1) = (2 x P) - L
R2 = P + H - L
Support (S1) = (2 x P) - H
S2 = P - H + L
Camarilla pivot points are based on the Camarilla equation method developed by Nick Scott. Are presented as a set of eight levels of the support and resistance values without a central pivot point (that is crucial for floor pivot points). The precise calculation of these turning points is somewhat unclear. But more importantly, these turning points can be calculated and still work for all traders. They can be used to set the stop loss and take profit orders to automate Forex trading. Use the following rules to calculate the points of the Camarilla pivot:
R4 = (H - L) x 1.1 / 2 + C
R3 = (H - L) x 1.1 / 4 + C
R2 = (H - L) x 1.1 / 6 + C
R1 = (H - L) x 1.1 / 12 + C
S1 = C - (H - L) x 1.1 / 12
S2 = C - (H - L) x 1.1 / 6
S3 = C - (H - L) x 1.1 / 4
S4 = C - (H - L) x 1.1 / 2
The axes of the floor (the most basic and popular type of pivots) are widely used in the analysis of technical change operations. The main objective of a turning point is to represent a first level of support / resistance - the point at which the trend can be bullish or bearish. The levels of resistance and support (from first to third) serve as additional points of possible outbreaks trend or trends limits. These are the rules to calculate floor pivot points:
The pivot (P) = (H + L + C) / 3
Resistance (R1) = (2 x P) - L
R2 = P + H - L
R3 = H + 2 x (P - L)
Support (S1) = (2 x P) - H
S2 = P - H + L
S3 = L - 2 X (H - P)
Tom DeMark pivot points are not as popular as floor pivots, but it is even easier and can be used to determine the range of a broker trading period now with the High, Low and Close values of the previous period and the normal value a current period. To calculate DeMark pivot points can use the following rules:
If <Close Opencurrent Then X = H + L 2 X + C;
If> Close Opencurrent Then X = X 2 H + L + C;
If Close = Opencurrent Then X = H + L + 2 XC;
New A = X / 2 - New Low L = X / 2 - H
Another way to calculate the pivot points are Woodie pivot points. They are very similar to floor pivot points, but are calculated giving more weight to the closing price of the previous time period. The rules for calculating Woodie pivot points are:
The pivot (P) = (H + L + 2 x C) / 4
Resistance (R1) = (2 x P) - L
R2 = P + H - L
Support (S1) = (2 x P) - H
S2 = P - H + L
Camarilla pivot points are based on the Camarilla equation method developed by Nick Scott. Are presented as a set of eight levels of the support and resistance values without a central pivot point (that is crucial for floor pivot points). The precise calculation of these turning points is somewhat unclear. But more importantly, these turning points can be calculated and still work for all traders. They can be used to set the stop loss and take profit orders to automate Forex trading. Use the following rules to calculate the points of the Camarilla pivot:
R4 = (H - L) x 1.1 / 2 + C
R3 = (H - L) x 1.1 / 4 + C
R2 = (H - L) x 1.1 / 6 + C
R1 = (H - L) x 1.1 / 12 + C
S1 = C - (H - L) x 1.1 / 12
S2 = C - (H - L) x 1.1 / 6
S3 = C - (H - L) x 1.1 / 4
S4 = C - (H - L) x 1.1 / 2
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