Those traders who are not using Forex trading tools are actually preparing themselves to fail because these are the ones that can be used for better trading and profit generation bidding for currency pairs. Out of the most popular Forex trading tools, pivot point calculator is the most scientific one as it helps traders have a broad understanding of future trades.
Nonetheless, Pivot Points are calculated on the previous days market move and trades are entered when the market hits a support or resistance line of the pivot point. This trading tool provides your OB/OS indicator i.e. Overbought and Oversold indicator, and tells if these are in agreement and helps you make informed decisions.
Also, all the support and resistance lines are put in place 1st thing in the morning; thus, it helps you in trading the financial markets. Not to say that a pivot point calculator has long been used in one or the other ways by traders and long before the invention of computers this was the method used by the traders in the pits to determine hidden support and resistance levels.
Thus, when you are using a pivot point calculator you know that you can use it for technical analysts as well. One of the major advantages using this tool is it can calculate points well in advance and help you know the future course of trade in the most scientific manner. Also, many technical trading charting packages can calculate them automatically.
The Most Scientific Analysis
Nevertheless, Pivot Point calculator introduces traders to the concept of trading Forex with Pivot Points as well, which have long been used by traders even before the invention of computers. However, computers have made it even far better than ever as calculation and analysis has become easy and better for Forex traders.
Not to say that as predicting the market which can go up, down, or sideways is always the work for a trader, it is now being done by the pivot point calculator and that too as and when the trader desires. The readymade solution for trader in the form of pivot point calculator has become a reliable tool for traders that they always use.
Some experts believe that whilst there are many time frames that can be used for calculating Pivots; for the purpose of this exercise let’s concentrate on the daily time frame. According to them daily pivot point calculator uses the previous days, Open, High, Low, and Close figures to provide you scientific data to help you trade well.
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