I am using a pivot point calculator indicator. I am trading with “FBS Trader”. Does Pivot Point Varies from one broker platform to another broker platform? If the value changes among trading platforms, then is there any universal pivot point calculator to do the calculation for all the trading platforms correctly. If anyone also know any website that does the calculation for me automatically,unlike babypips pivot point calculator where i have to calculate which values are to input. I live in GMT +6 area and I am not familiar with EST times, thats why i feel this input system so difficult.
what is server time in the indicator that have to be set… i am from GMT +6 area and my trading platform is FBS trader.Can anyone explain me what time should i use for this mt4 platform of FBS trader.
There are several different sets of formulas for calculating pivot levels. Various brokers may offer pivots calculated in various different ways. It’s a good idea to find out exactly what formulas your broker is using, and whether your broker offers a choice of formula sets.
Some formula sets use the OPEN, along with the HIGH, LOW, and CLOSE, in calculating the pivot. Some have a different way of calculating all of the support and resistance levels. And some include additional support and resistance levels, S4 and R4.
Here are some of the names commonly applied to different sets of pivot formulas: Classic Pivots, Camarilla Pivots, Fibonacci Pivots and Woodie Pivots. In additional to these well-known formula sets, any number of custom variations could be concocted by venturesome traders.
Most brokers and most traders use the Classic pivot point formulas listed below. But, beware of certain websites or brokers who use a slightly different set of formulas and call them “classic pivot point formulas”. One such is the website mypivots.com, which uses different formulas for R3, R4, S3 and S4 — but refers to their formulas as the “classic” pivot point formulas.
Here are the “Classic” pivot point formulas, as used by most brokers and traders:
[ul]
[li]P = (H + L + C) / 3
[/li]
[li]S1 = 2P - H
[/li]
[li]S2 = P + L - H
[/li]
[li]S3 = 2P + L - 2H
[/li]
[li]R1 = 2P - L
[/li]
[li]R2 = P + H - L
[/li]
[li]R3 = 2P + H - 2L
[/li][/ul]
In addition to these 7 pivot levels, 6 intermediate pivot levels are often calculated: SM1 halfway between P and S1, SM2 halfway between S1 and S2, SM3 halfway between S2 and S3; and RM1 halfway between P and R1, RM2 halfway between R1 and R2, and RM3 halfway between R2 and R3. Don’t be confused if you see these intermediate pivot levels labeled differently from the way I have labeled them — there are no universally accepted labels for these intermediate levels.
If you choose to use daily pivots, as I do, then you have to define what a “day” is. You could use midnight-to-midnight in your local time zone. Or you could use midnight-to-midnight GMT. Or you could use some other 24-hour period.
I believe that the optimum “day” is one which opens and closes at 5pm New York time.
That’s because, in the 24-hour worldwide forex market, 5pm New York time is the closest thing we have to the end of one trading day, and the beginning of the next trading day. At 5pm New York time, the normal business day has ended in Europe and in North America; the business day has not yet started in Asia; and only New Zealand and Australia are open for business. Generally, the lowest trading volume of the entire 24-hour trading day occurs in the hour between 5pm and 6pm New York time.
5pm in New York is 21:00 GMT in (northern hemisphere) summer, when the U.S. is on daylight saving time; and it’s 22:00 GMT in the winter, when the U.S. is on standard time.
If you are not in the eastern U.S. time zone, then you need to make the appropriate adjustments so that your pivot points are based on daily charts which open and close at 5pm New York time.
If you are quick with your pocket calculator, you can calculate all of the main pivot levels, plus the intermediate pivot levels, in a few minutes. But, there are websites which will do it for you:
Forex Pivot Point Calculator — This site uses the formulas shown above; they appear to be different, but a little algebra will confirm that they are the same. You have to type in the H, L and C for the time frame you are using, and the site will do the calculations for you, and display the results.
http://www.mypivots.com/Education/tools/pivot-calculator/ — This site offers you 8 different ways to calculate P; two ways to calculate S1, S2, R1 and R2; three ways to calculate S3 and R3; and two ways to calculate S4 and R4. As noted above, be aware that the “classic” formulas offered on this site are slightly different from the “classic” formulas most brokers and traders use.
Forex Pivot points - Mataf.net — This site has a calculator very similar to fxstreet, above, but with a cool added feature: you enter a time zone, and it will automatically calculate the pivot levels for 30 currency pairs. These calculations are based on a 24-hour time-frame from midnight to midnight in the time zone that you specify.
In order to make this calculator furnish daily pivots based on 5pm New York time, you have to enter GMT+2 as the time zone in the winter, and GMT+3 as the time zone in the summer. (In other words, 5pm in New York is midnight at Castle Dracula in Transylvania.)
Here’s a good article on using pivot points in your trading:
Pivot Point Trading by Mark McRae - Surefire Forex Trading
By the way, here on this forum, we don’t often hear from people in the GMT+6 time zone. What country are you from?
Thanks Clint,
it was very helpful for me, I am from Bangladesh. There are not many traders in my country, so internet is the only mentor i have, and Babypips is the best teacher.The calculators you have provided are going to help me a lot, so thanks again.
1 Like
Thanks for explaining this i’d been curious about it.
I was just about to search for an answer to the same question that shaon hasked when I came across your excellent article.
Thanks a mil.