What is pivot trading?

<p id="isPasted">An indicator of technical analysis, or a calculation used to determine the overall direction of a market, is a pivot point. Forex traders use pivot points as a gauge for future price movements based on a price level. Several Forex traders make their intraday trading decisions based on daily pivot levels, and as such, intraday traders must closely monitor price action at these levels.</p><p><strong>Pivot point formula</strong></p><p>Pivot point (PP)&nbsp;= (High + Low + Close) / 3</p><p>First resistance (R1)&nbsp;= (2 x PP) – Low</p><p>First support (S1)&nbsp;= (2 x PP) – High</p><p>Second resistance (R2)&nbsp;= PP + (High – Low)</p><p>Second support (S2)&nbsp;= PP – (High – Low)</p><p>Third resistance (R3)&nbsp;= High + 2 (PP – Low)</p><p>Third support (S3) = Low – 2 (High – PP)</p><p class="forexqa-img-container"><img src="https://prod-forexqna.s3.amazonaws.com/uploads/froala_editor/images/1649325969318.png" style="width: 548px;" class="fr-fic fr-dib fr-draggable forexqa-img fr-fil"></p><p>There are many online pivot point calculators available.</p><p><br></p><p><br></p>

<p id="isPasted">Pivot points are indicators developed by floor traders for determining potential turning points in the commodities markets. Traders use pivot points on the forex and other markets to determine likely levels of support and resistance, and therefore to determine when it is time to turn bullish or bearish.</p><p>The pivot point is designed to predict market turning points, unlike most technical indicators. The price is calculated by taking the previous day's closing price, high, and low. When pivot points are calculated in the forex market, they take into account the entire 24-hour trading period, with the price at the end of the U.S. "session" being considered the closing price.</p>

<p><br>Scalping is a way of making money that minimizes losses (and profits) by placing orders, getting small profits, REALLY keeping your eyes on the price, and quickly getting out when the job is done.</p>

<p>Pivot points are indicators used by floor traders in the commodities markets to determine potential turning points. Day traders use pivot points to determine likely levels of support and resistance, and therefore possible turning points from bullish to bearish.</p>

<p>Pivot trading is a technical analysis method that uses past market data to identify potential levels of support and resistance for an asset's price. These levels are determined by calculating the average of an asset's high, low, and closing prices over a specific time period, such as daily or weekly. Traders use pivot points to generate buy or sell signals and as a basis for setting target prices and stop-loss orders.</p>