The pivot calculator is a technical indicator that is derived by calculating the numerical average of a particular currency pairs high, low and closing prices.

When calculating pivot points, the pivot point itself is the primary support/resistance. This means that the largest price movement is expected to occur at this price. The other support ad resistance levels are less influential, but may still generate significant price movements.

Pivot points can be used in two ways. The first way is for determining overall market trend. If the pivot point price is broken in an upward movement, then the market is bullish, and vice versa. Bear in mind, however, that pivot points are short-term trend indicators, useful for only one day until they need to be recalculated. The second way is to use pivot price levels to enter and exit the market.

Pivot points enable you to take a look at levels that are likely to cause price movement. The success of a pivot point system lies squarely on the shoulders of the trader, and on his or her ability to use the pivot point systems in conjunction with other forms of technical analysis.