Pivot Points Daily

Description:

Pivot Points are a widely used technical analysis tool that helps traders identify potential areas of support and resistance in the market based on the average of the high, low, and closing prices of the previous day. FPivot points are commonly used to analyze price action and forecast potential price movements in various financial instruments, including stocks, forex, commodities, and indices.

Input Parameters:

P: Refers to the central level calculated from the previous day's high, low, and close prices, serving as a key indicator for identifying potential support and resistance levels in financial markets.
S3: This is a quarter of the distance between yesterday's high and low subtracted from the low.
S2: This represents a sixth of the distance between yesterday's high and low subtracted from the low.
S1: This is calculated by dividing the distance between yesterday's high and low by 12 and subtracting it from the low.
R3: This is a quarter of the distance between yesterday's high and low added to the high.
R2: This represents a sixth of the distance between yesterday's high and low added to the high.
R1: This is calculated by dividing the distance between yesterday's high and low by 12 and adding it to the high.

Use Case:

Entry and Exit Points: Pivot points can help traders determine optimal entry and exit points for trades. For example, a trader might go long when the price bounces off a support level or go short when it reverses from a resistance level.
Set Stop-Loss Orders: Pivot points can be used to set appropriate stop-loss orders. Traders can place stop-loss orders below support levels for long positions or above resistance levels for short positions.
Determine Profit Targets: Traders can use pivot points to set profit targets by anticipating the next level of support or resistance as the price moves in their favor.

This feature can be used in: