Forex Pivot Point Calculator- How To Make Your Own Or Download Free

To identify significant support and resistance levels, many successful traders utilize a pivot point calculator on a daily basis. A free pivot point calculator can be downloaded from several websites on the internet by conducting a basic search on your favorite search engine.

However, some traders prefer customizing pivot point calculators according to their preferred currency pairs and market conditions. Apart from that, several traders prefer to add extra pivot levels for their reference.

You can easily create your own pivot point calculator using a Microsoft Excel spreadsheet. Alternatively, you can download a free copy of a pivot point calculator listed in the resource box.

The Pivot Point Formula

The pivot point formula is based on four values obtained from your Forex charting software. These values are derived from yesterday’s candle on a daily chart:

  • High
  • Low
  • Open
  • Close

The central pivot point is the critical value in your pivot point calculator. Adding the values of High, Low, and Close, and dividing the total by three will give you the central pivot point value.

You can use this central pivot point value to determine the other levels, such as R1, R2, S1, and S2.

Many traders use mid-levels and include them as M1, M2, M3, and M4, as the distance between these levels can sometimes be quite significant. These mid-levels are positioned as follows:

  • M1 – Between S1 and S2
  • M2 – Between S2 and the Central Pivot Point
  • M3 – Between the Central Pivot Point and R1
  • M4 – Between R1 and R2

The formulas for the other levels are:

S1: (Central Pivot Point x 2) minus the High

S2: Central Pivot Point minus (R1 minus S1)

R1: (Central Pivot Point x 2) minus the Low

R2: (Central Pivot Point minus S1) plus R1

After calculating these levels, you can input the M levels in your pivot point calculator:

M1: S1 minus S2 divided by 2

M2: Central Pivot Point minus S1 divided by 2

M3: R1 minus Central Pivot Point divided by 2

M4: R2 minus R1 divided by 2

You can download a spreadsheet from the resource box that is set up for the six major currency pairs. You can use this pivot point calculator to prepare for each day’s trading session.

By hovering your mouse over yesterday’s candle on your daily chart, you can view a window displaying the High, Low, Close, and Open values. You can input these values into the appropriate cells on the spreadsheet, and the pivot points are automatically calculated for you.

After this, you can insert horizontal lines to mark the primary pivot levels on the 15-minute chart. This enables you to see the general area of price activity for the day.

On occasion, prices may exceed R2 or S2 for the day, deviating from the average range. The spreadsheet linked below calculates additional pivot levels to assist you on such trading days.

Pivot points are one of several tools that traders use to identify where the price is likely to go and where it is likely to stall. You can either use the above formulas to create your own pivot point calculator or download a free one from the link listed below.

Written by Michael A Jones.

Leave a Reply