Determination of axis point
The pivot point, support point and resistance level are calculated according to the opening price and closing price of the last trading cycle, and the specific calculation method is as follows:
Axis point (PP) = (high+low+close) /3
The first support level? (s 1)=(2 * PP)- high
The first resistance level? (r 1)=(2 * PP)- low
Second support level? (S2)= PP- (high-low)
Second resistance level? (R2) = PP+(high-low)
Application skills of pivot point
When the exchange rate touches the axis point pp, you can wait for the exchange rate to return to the support level s 1 or the resistance level R1; When the exchange rate touches r 1, wait for the exchange rate to return to the position of axis point pp or r2; When the exchange rate reaches s 1, wait for the exchange rate to return to s2 or the position of axis point pp; And so on.
If there is no obvious fluctuation in the exchange rate, the exchange rate usually fluctuates between s 1 and r 1, and only when the market is fierce will it break through s2, r2 or even s3 and r3.
Axis trading is relatively simple, convenient to use and more suitable for novices. Using the axis to determine the support point and resistance point can make your analysis conclusion more accurate and realize profit. It can also be used with other technical indicators.