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The most common method of calculating Pivot Points. In contrast, Forex works around the clock, so the end of the trading day coincides with the beginning of the next one. Initially, Pivot levels were used in the stock market, where the previous day's closing price is very important and significantly affects the traders' behavior psychology during the next day. You should also consider the differences between the Forex market and the Stock market.

Its value is determined by the formula: H – L. While calculating Pivots the concept of RANGE (R) is also used. For calculating levels, HIGH (H), LOW (L) and CLOSE (C) data for the previous period are used, usually, it is a day, week, month or hour.