Pivot points is a position / price point that is used in short-term (one day of trading) as a reference price movements next. For example, to determine support and Resistance daily.

>> The methods used in the search for pivot points are as follows:

Pivot Point = (High + Low + Close) / 3

>> Variation - 1. Basically the same, only added to the closing price factor price gaps.

Pivot Point = (High + Low + Close + Open) / 4


>> Variation - 2. Same with the traditional method, but the price is replaced with the close price open.

Pivot Point = (High + Low + Open) / 3


After we get the pivot point, then we will find a point of support and Resistance, in this case support in the Resistance and is looking for support and Resistance to intraday trading, namely support and minor Resistance.

* Support

Support - 1 = (2 x Pivot) - High
Support - 2 = Pivot - (High - Low)

* Resistance

Resistance -1 = (2 x Pivot) - Low
Resistance - 2 = Pivot (High - Low)


Closing price and the pivot point will be the main focus in intraday trading this technique. Here we will determine that point when the closing price (CP) > pivot point (PP), the positive signal or in other words, we do tend to be open long positions. Conversely, if PP > CP, then the signal is negative or, in other words, a position that is recommended in the Short position.

Of course, not only closing price and the pivot point of concern. Support and Resistance also become a point of reference in determining the position will be taken soon. Both these points help determine, for example to buy back (buy-back). For example, we have to buy GBPUSD at a certain price and then decreasing, then the position in the support-1 should we do buy-back. If prices continue to slide down under the support-1, the buy-back position is in support-2. Support-2 is a position where the final limit of the decline at the time.

If the trends show positive movement, and the price starts to move up above the pivot point, the position is recommended that long. In a position that is recommended when the negative trends and shows signal prices start moving down under the pivot.

HopeFully UseFull :D