Floor pivot points are the simplest type of pivots used in forex.

From the previous period: H = high, L = low, C= close

Pivot (P) = (H + L + C) / 3

Resistance R1 = 2P – L
Resistance R2 = P + H – L
Resistance R3 = H + 2(P – L)

Support S1 = 2P – H
Support S2 = P – H + L
Support S3 = L – 2(H – P)

The pivot point is the primary level of support/resistance, while the calculated levels of resistance or support point to zones of possible trend reversal.

Floor pivot points have been one of the bases for people referring to themselves as ‘floor traders’, pivots leading to identification of ‘cluster zones’ and the like – perhaps slightly less popular as a system than it has been in the past. (You can often plot the arc of a system – the exaggerated claims settling down into a sometimes useful tool, or dropping into complete disuse…).

One Response to “Forex floor pivot points”

1. Forex » Forex floor pivot points says:

   November 6, 2008 at 7:59 am

   [...] [Technorati] Tag results for forex Floor pivot points are the simplest type of pivots used in forex. From the previous period: H = high, L = low, C= close Pivot (P) = (H + L + C) / 3 Resistance R1 = 2P – L Resistance

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