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Pivot points change depending on the time frame that you use. If you use a daily time frame, then yes, it does change every day. Pivot points can be calculated for any time frame (Montly, Weekly, Daily, etc), although the most common time frame is for Daily charts.
The calculation for a pivot point is shown below:
Pivot Point= (High (previous) + Low (previous) + Close (previous))/3
Resistance 1 (R1) = (2 x Pivot Point) – Low (previous period)
Support 1 (S1) = (2 x Pivot Point) – High (previous period)
Resistance 2 (R2) = (Pivot Point – Support 1) + Resistance 1
Support 2 (S2) = Pivot Point – (Resistance 1 – Support 1)
about 1 year ago
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Answers (1)
To add to Forex Gump's answer, make sure you use the NY close for your calculations. This is what most traders use, so it's best that you use it as well. How come? Well, you want to know what S|R levels that other traders are looking at right?? If other traders are looking to short at R1 or R2, you can see whether it is really holding as resistance or not.
about 1 year ago
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ForexEA
Here is an article http://pipburner.com/pivot-points-c... with Pivot point calculation formula as well as indicator itself. As a bonus, you can download there Pivot Point calculator for your PC.
11 days ago
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