We know that **pivot points** are instruments which are certainly useful for traders who want to perform a **technical analysis** to predict the development of currencies.

You could be wondering which market convention for calculating the *pivot points* will be applied. The financial market is open 24 hours a day, so how do you divide the day? The majority of traders calculate the pivot points according to the time 05:00 EST and the end of the trading day after the midnight EST.

## Questions and answers on the pivot points

You can use the whole day for your trading strategy. Sometimes the calculations are very similar when the market closes at 5: 00, but it is also not rare to see that the prices would continue its trend even after this time. We can say this is a good method for calculating the pivot points.

Another question is, if pivot points for a 1-day graph is calculated does it remain unchanged for all the periods of the chart or must it be calculated again for any period of time?

It remains unchanged for all the periods of the trading day. No further calculations are necessary, because you can trade on all timeframes with the same day pivot points: 1 day, 1 hour, 5 minute or even 1 minute. What is the formula for calculating the pivot points?

The pivot point results from (high + low + close) / 3

R1 = 2 * pivot – low

R2 = pivot + (high – low)

The midpoint between R1 and R2 = R1 + (R2 – R1) / 2

The midpoint between the pivot point and R1 = pivot + (R1 – pivot) / 2

In these formula is: “Pivot” for **pivot points**, R1 for the first point of resistance, is R2 for the second point of resistance.

Because the closing time of the New York Stock Exchange is at 05:00 EST, which is the most effective time and must be strictly observed with your local time to calculate pivot points. The answer to this question is very simple, the time difference between your country and the USA is leading in this.

However, you must consider that you have a different trading platform with any Forex broker, i.e. a different server time. For example, some platforms can use the EST time, other time GMT or even the time GMT + 2, etc. It is so important to calculate pivot points on the basis of the actual server time of its own trading platform. Even if you have the ability to change the time settings of your trading platform, this would not solve the problem, because the server would still depend on its internal time.

For a better security, you can ask at any time your broker for the server time of the platform, the customer service should be able to refer you to the correct time. Then you want to convert this time just after the EST time and precision pivot points are to calculate after the trading hours for your platform.

To the maximum and the minimum point of the Friday be applied? What is with the pivot point trading hours of Sunday?

In this case, you can say that you must use the time between midnight EST of on Friday afternoon to midnight EST of Sunday for the calculation of the pivot points Monday.

Any further questions on the topic of pivot points be answered in the next article.

There is even a pivot points calculator, which enables to calculate every day new lines, which takes into consideration even the centers?

It’s a personalized indicator of the trading platform MetaTrader, which is one of the most used platforms at all. This counter displays the lines of pivot points for each trading day comes in handy on your screen.

## Which is the best time for the calculation of the pivot points?

What time is the best for pivot points? For the calculation of the pivot points on the most common periods of time, they are 1 day, 1 week or 1 month.

The calculation on a daily basis is the best for short-term trading: namely for the scalping with duration from 1 to 5 minutes, but even up to 15 minutes, and up to a full hour. The calculation of the pivot points on a weekly basis will help you to recognize the support and resistance levels of market prices for every hour and up to 4 hours. Finally, the calculation of the pivot points on a monthly basis for the trading day graphics is used.

The best time for the calculation of the pivot points is known from midnight until the next midnight in EST time. However, the amount of time between 17:00 and 17:00 EST can be applied.

Sometimes there could be tags a little confusion in the choice of opening and development especially for traders with less experience, which must be applied for the calculation of the day -, week – and month-pivot points.

For the daily calculation of the pivot point, you need the highest, the lowest and the opening and development of data of the last trading day. For example, you need data today from yesterday.

Best to calculate these points, you can use day graphics; it highest, consider the lowest and opening and development values This data can be applied successfully in automatic pivot points machines, i.e. where computers that automatically display the pivot points of a day.

Back to the question from the article, we see that it is required for the calculation of weeks-pivot points to draw the last week into consideration.

Again: Just the past week must be considered for today’s trading. Namely, it is necessary to take the data between Monday and Friday, and finding of which the highest, the lowest and the opening and data of development of.

For the trade based on monthly pivot points, you need the highest, lowest and opening and development data of the past month. So, again, for today you would need pivot point, which are from the last month. To be precise, you take the first and the last day of the month and during this time period, the data needed for the calculation of the pivot points are located. Finally, the same rule applies to the calculation of the daily, weekly and monthly pivot points.

Especially new traders can ask the question how the position of the highest, lowest and opening and access points detected, that is required for the calculation of the pivot points. You need to just look on the day graphics and bring the mouse on the candle of the last day and the trading software will show the data you, you need. Z.B:

- O 0,5555 means that the candle at 0,5555 was opened
- H 0,7777 means that the highest values of the candles were in 0,7777
- L is the lowest value
- C is the development value of the candle

The alternative is to design hourly graphs. In this case, consider all the candles between midnight and midnight of the last day, and then the price must be found which corresponds to the lowest value (L) and the corresponding to the highest value (H) and the price corresponding to the value of the development.