MCX Daily Pivot Points
Disclaimer:
The above Level shown is for study purposes only and not for trading decisions
MCX Daily Pivot Points is a technical analysis indicator used by traders to determine the overall trend of the market over different time frames. It is a simple yet powerful tool that helps traders to identify support and resistance levels and possible price movement direction.
The pivot point is calculated using the previous day’s high, low, and closing prices. It is calculated as follows:
Pivot Point (PP) = (Previous Day High + Previous Day Low + Previous Day Close) / 3
From the pivot point, the support and resistance levels are calculated as follows:
First Resistance (R1) = (2 x Pivot Point) – Previous Day Low First Support (S1) = (2 x Pivot Point) – Previous Day High
Second Resistance (R2) = Pivot Point + (Previous Day High – Previous Day Low) Second Support (S2) = Pivot Point – (Previous Day High – Previous Day Low)
Third Resistance (R3) = Previous Day High + 2 x (Pivot Point – Previous Day Low) Third Support (S3) = Previous Day Low – 2 x (Previous Day High – Pivot Point)
The first support and resistance levels are considered the most important, followed by the second and third levels. Traders use these levels to identify potential entry and exit points, as well as to set stop loss and take profit levels.
The pivot point indicator can be used in conjunction with other technical indicators, such as moving averages, oscillators, and trend lines, to confirm signals and enhance trading strategies. It is widely used in the forex market, as well as in other financial markets, such as stocks and commodities, and crypto currency.
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