Simply put, fulcrum uses the highs, lows and closing prices of the previous trading day to calculate five potential intraday support or resistance of market activities in the current trading day. Suppose you know the highest price, lowest price and closing price of the previous trading day, then you can calculate the above five prices.

Let's demonstrate how to keep fit.

High point of previous trading day =H

Last trading day low =L

Closing price of the previous trading day =C

The first price to be calculated is the fulcrum, which is located in the middle of the other four prices, with two support levels and two resistance levels above and below.

Axis point =(H+L+C)÷3

Resistance 1=(2× fulcrum) -L

Support 1=(2× fulcrum) -H

Resistance 2= fulcrum+(high-low)

Bracket 2= pivot point-(high-low)

If you are familiar with this tool from the futures market, you may get used to the original method of calculating fulcrum slightly different from the above, including using the "opening price" of the current trading day and dividing the result by 4.

But in the foreign exchange market, the opening price of the current trading day is actually the same as the closing price of the previous trading day, so the original algorithm is of little significance. Another important point is that there are no strict rules on how to calculate the fulcrum, so you can try different combinations to see which one is the most useful.