Learning about the Pivot Calculator: Attention-Grabbing Facts
Some forex traders often point out that the pivot calculator makes the most complex of computations simple. Indeed, it would be appropriate to say that such a computational tool transforms all those who engage in forex activities into fortunetellers. After all, upon learning to use a pivot point calculator, one would immediately be capable of predicting all sorts of trends in upcoming trading cycles. It should be emphasized however, that achieving noteworthy outcomes in trading currencies is a goal best achieved by gaining more knowledge about pivot point calculators.
It is only to be expected that most people would be intrigued by misconceptions about such tools. In particular, novice traders are often told that a pivot calculator is barely of any use for those who wish to make predictions based on long-term trends. Given that such tools only utilize data gathered from recently-completed trade cycles, considering it as a one-day prediction utility is quite logical. One should keep in mind though, that by averaging the results given by calculators, especially those based on the Tom DeMark formula, noticing long-term trends and making much more accurate forecasts should be possible.
Beginner traders would also be surprised to know that manually computing for pivot points can actually be done by just about anyone without facing considerable difficulty. It cannot be denied that the main formula for acquiring the pivot point is simple; by adding the close, the high, and the low of a particular trading cycle and dividing the sum by three, one achieves the same result provided by a basic floor pivot calculator. As a matter of fact, computing for the first resistance level is easy as well. One only has to multiply the pivot point by two and subtract the “low” from the resulting product.
Given, many aspiring traders truly find it surprising that the formulas utilized by pivot point calculators are quite simple, such individuals would also be shocked by the fact that it is usually not necessary to use a pivot calculator. Simply put, there are frequently-updated pivot tables that can be accessed for free on the web. In most cases, such tables even feature multiple support and resistance levels, making it easy for eager traders to focus on making accurate predictions instead of computing for values. Furthermore, there are programs that allow people to automatically download and graph pivot point data.
As made clear, not every common belief about the aforementioned computational tool is true. To reiterate, albeit calculators are designed to provide data that only holds true for a short period, it would still be possible to obtain “long-term” information by merely averaging “short-term” results. As also pointed out, manually computing for pivot points and even resistance levels is a task that can be done by any person with basic math skills. Of course, it is often an option to gather pivot points instead of coming up with such values firsthand. All in all, the pivot calculator is indeed associated with several false notions.
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