Pivot Points (PP) are used to determine potential support and resistance levels based on the previous period’s high, low, and close prices. Traders use them to anticipate price movements and plan entry or exit points.
How it works:
Pivot Point (P): (High + Low + Close) / 3
Support levels: S1, S2, S3
Resistance levels: R1, R2, R3
Using Pivot Points in Capitalise.ai:
Parameters:
Pivot Type: Standard, Fibonacci, Woodie, Camarilla (depending on calculation preference).
Bar Period: Timeframe to calculate pivot levels (Day, Week, Month).
Bar Price: Price type for calculation (Close recommended).
Examples:
Buy 1,000 EUR/USD if EUR/USD crosses above PR1(day)
Sell 50 shares of AAPL if AAPL falls below PS2(Week)