what is pivot point and how it work?

What is pivot point and how it work?

What is pivot point and how it work?

Assalamu Alaikum: dear members Jab aap Forex trading market me technical analysis ki base per trading karte hain to ismein aapko multiple factors ko carefully study karna hota hai jo aapki decision-making ko effective banane mein bahut hi important platform aur guidelines provide kar sakte hain Jab aap market mein technical analysis ko complete karte hain to ismein aapko pivot point ko acchi tarah study karna hota hai iski kuchh basic information main aapse share karne ja raha hun. What is Pivot Point Dear members Jab aap market mein is point ki base per entry lete Hain to sabse pahle aap to iski basic information ka completely idea hona chahie Jab aap market mein daily candlesticks ji proper calculation karte Hain to iski base per aap market mein is point ko easily recognise karke apni decision-making kar sakte hain is point ko calculate karne ke liye is ka ek specific method hota hai jiski details following mentioned hai. Calculating Pivot Point Dear members Jab aap market mein is point ki calculation karne ke liye study karte hain to aapko Vijay idea hota hai ki aapko market mein last daily candlesticks ke closing point aur aur opening point ke sath sath market mein highest aur lower point ki calculation ka idea hona chahie kyunki Jab aap market mein closing value lowest values aur highest values ko add karke teen per divide karte hain to aapko is point ki calculation ka idea Mil jata hai. How to Trade Is point ki base per Jab aap trade lete Hain to iska ek specific method hota hai Jab aap market mein selling aur Buying confirmation hasil karte Hain to is point ki based per bhi aapko easily identification ho sakti hai aur aap apni interest ko profitable aur effective bana sakte hain iski kuchh details main aapse share karna chahta hun ki aap is point ki base per kaise entries Le sakte hain. When to Buy Dear members Jab off market mein currently prices ko observe karte hain aur uske sath sath his point ki calculation karne ke bad aapko yah idea hota hai ki currently prices is point se below previous kar rahi hai to use condition main aapko market mein hamesha bullish trend mein apni entry leni hoti hai aur is point per take profit ki limit ko set karna hota hai. When to Sell Dear members Jab aap market mein is point ki best per apni trading decision-making ko effective banana chahte Hain to aapko market mein yah idea ho jata hai ki market mein Jab is point ki base per currently prices above level per trivel kar rahi hoti hai to use time per aap market mein celink trend mein entry lekar apni trading co effective banaa sakte hain aur point ki ki price per aap apne take profit ki limit ko set kar sakte hain.

Assalamu Alaikum Dosto!

Pivot Point

Pivot points traders aur investors ko potential support aur resistance levels maloom karne mein madadgar hotay hain. Inka asal maqsad traders ko aitmaad se faislay karne mein madad dena hota hai entry aur exit points, stop-loss placement, aur risk management ke hawalay se. Pivot points market sentiment ko qaim karne aur trading decisions ko asaan banane ke liye ahem reference points ke taur par istemal hotay hain. Pivot points ka tasavvur commodity futures exchanges ke trading pits se shuru hua tha, jahan floor traders ko trading day ke liye mumkinay tajaweezat maloom karne ke liye aik tareeqa chahiye tha. Waqt ke sath, pivot points taraqqi paa kar various financial markets jaise stocks, forex, aur commodities mein wabaqay istemal hotay hain. Pivot points ke asal idea yeh hai ke qeemat ek khaas level ki taraf tawajjo kerti hai, jo faisla karne ke liye istemal kiya ja sakta hai. Ye levels ek mathematic formula ke zariye nikalte hain jo previous trading session ke price action ko madde nazar rakhta hai. Pivot points khaas tor par day traders aur short-term traders mein ahem hotay hain due to unki ahmiyat intraday trading mein hoti hai.

Calculation of Pivot Points

Pivot points ko aik seedha mathematic formula istemal kar ke nikala jata hai. Is formula mein previous trading session ke high, low, aur closing prices ko liya jata hai pivot point ke aur kuch support aur resistance levels maloom karne ke liye. Yahan standard pivot points calculate karne ke liye formula diya gaya hai: Pivot Point (PP) = (High + Low + Close) / 3 Jab pivot point nikal lia jata hai, to aap is par mabni mukhtalif support aur resistance levels calculate kar sakte hain:

• Support 1 (S1) = (2 * PP) - High
• Support 2 (S2) = PP - (High - Low)
• Support 3 (S3) = Low - 2 * (High - PP)
• Resistance 1 (R1) = (2 * PP) - Low
• Resistance 2 (R2) = PP + (High - Low)
• Resistance 3 (R3) = High + 2 * (PP - Low)

Yahan, "PP" pivot point ko darust karta hai, "High" previous session ka buland tareen price hai, "Low" past session ka kam tareen price hai, aur "Close" previous session ka band price hai.

Pivot Point k Types

Jabke standard pivot points jo pehlay bayan kiye gaye hain sab se aam hain, traders ke istemal ke liye kuch mukhtalif qisam ke pivot points bhi hain. Har qisam alag alag support aur resistance levels provide karti hai, aur kuch traders apni trading strategy aur market conditions ke mutabiq aik qisam ko doosre se behtar samajhte hain. Yahan pivot points ke chaar bade qisam hain:

1. Standard Pivot Points:
   • Ye pivot points aur support/resistance levels hain jo pehlay bataye gaye formula ke mutabiq nikalte hain.
   • Standard pivot points various markets mein qubool kiye jate hain aur istemal kiye jate hain.
2. Fibonacci Pivot Points:
   • Fibonacci pivot points mein Fibonacci retracement levels ko calculation mein shamil kiya jata hai.
   • Ye pivot points standard pivot points ki tarah calculate hote hain lekin Fibonacci ratios jaise 0.618 aur 0.382 ko shamil karte hain.
   • Fibonacci pivot points woh traders ke liye mufeed ho sakte hain jo apni trading strategy mein Fibonacci analysis ko shamil karte hain.
3. Camarilla Pivot Points:
   • Camarilla pivot points Nick Stott naam ke trader ne develop kiye hain aur inko tight support aur resistance levels provide karne ke liye jana jata hai.
   • Inko calculate karne ke liye specific formulas istemal kiye jate hain jo previous day ki range ko madde nazar rakhte hain.
   • Camarilla pivot points wo traders ki pasandidgi hain jo narrow trading ranges ki talash mein hain.
4. Woodie's Pivot Points:
   • Woodie's pivot points ek mukhtalif calculation method istemal karte hain, jisme previous day ki closing price aur aik multiplier ko madde nazar rakha jata hai.
   • Ye pivot points closing price ki ahmiyat ko zor daar tareen tor par dikhate hain aur kuch traders inko apni trading strategy mein istemal karte hain.

Pivot point qisam ka intikhab traders ki pasandidgi par aur unki trading strategy aur market conditions ke mutabiq hota hai. Kuch traders apni trading strategy ke sath aik qisam ko doosre se behtar samajhte hain.

Pivot Points Ka Istemal

Pivot points potential support aur resistance levels ko maloom karne mein qeemati insights provide karte hain, jo traders ko behtar trading decisions lene mein madadgar hoti hain. Yahan trading mein pivot points istemal karne ke kuch aam tareeqe hain:

1. Support Aur Resistance Levels:
   • Pivot points ahem price levels ko pehchanne mein madad dete hain. Pivot point khud central pivot ke taur par kaam karta hai, jabke support aur resistance levels potential price movements ke liye aik framework dete hain.
   • Traders aksar in levels ke qareeb price reversals ya bounces ke liye dekhte hain. For example, agar price aik support level (maslan S1) ke qareeb pohnchti hai aur woh taqat dikhata hai, to ye ek potential buying opportunity ki taraf ishara kar sakta hai.
   • Mutasir taur par, agar price aik resistance level (maslan R1) ke qareeb pohnchti hai aur kamzori dikhata hai, to ye aik potential selling opportunity ki taraf ishara kar sakta hai.
2. Pivot Point Trading Strategies:
   • Mukhtalif trading strategies pivot points ke aas paas buni jati hain, including breakout aur reversal strategies.
   • Pivot Point Breakout: Traders price ke breakout se pehlay pivot point ya aik significant resistance level ke liye wait karte hain, phir long (buy) position enter karne se pehlay. Isi tarah, woh wait karte hain ke price pivot point ya aik support level ke niche break ho ne se pehlay short (sell) position enter kare.
   • Pivot Point Reversal: Kuch traders price ke potential reversals pe ghor karte hain jab price pivot point tak pohnchti hai. For example, agar price downtrend ke doran central pivot point (PP) ke qareeb pohnchti hai aur phir upper direction mein mud jati hai, to ye bullish reversal opportunity ki taraf ishara kar sakta hai.
3. Intraday Pivot Point Trading:
   • Pivot points khaas tor par intraday traders ke liye mufeed hain jo chotay arsay mein price movements se faida uthana chahte hain.
   • Traders aksar pivot points ko choti time frames (jaise ke hourly ya 15-minute charts) par calculate karte hain taake intraday trading decisions li ja saken.
   • Pivot points ka intraday istemal ziadah frequent analysis aur tezi se faislay lene ke saath hota hai.

Limitations and Criticisms

Jabke pivot points technical analysis aur trading ke liye qeemati tools hain, to zaroori hai ke aap unki hadood aur tanqeed se waaqif hon:

1. Predictive Power Ki Kami:
   • Pivot points historical price data par mabni hain aur ye predictive indicators nahi hain. Ye past price action par based support aur resistance levels provide karte hain.
   • Market conditions jaldi badal sakti hain aur pivot points hamesha future price movements ko durust tor par forecast nahi kar sakte.
2. Time Frame Ke Liye Sensitivity:
   • Pivot points different time frames par calculation ke doran mukhtalif support aur resistance levels paida kar sakte hain.
   • Choti time frames ziadah sensitive aur ziadah frequent pivot point levels paida kar sakte hain, jisse trading decisions lene mein ziadah noise paida ho sakti hai.
3. Overuse Aur Self-Fulfilling Prophecy:
   • Pivot points ki ahmiyat ke sabab se traders inko baray tareen tawajjo se dekhte hain, jo self-fulfilling prophecies (khud puri hone wale bhavishy ki peshgoiyan) ko paida kar sakti hai. Dusre alfaz mein, jab ziadah traders aik hi pivot level ke as paas trading karte hain, to ye peshgoi hone wale price reactions ko paida kar sakti hai.
   • Isse kabhi kabhi crowded trades aur anwaar price spikes ya reversals ke asrat ho sakte hain.
4. Market Volatility:
   • Pivot points ziadah volatile markets mein kam achaamak kar sakte hain jahan price gaps ya sudden price movements paida ho sakte hain.
   • Aisi halat mein, previous data se nikali gayi support aur resistance levels kam reliable ho sakte hain.
5. Lack of Fundamental Analysis:
   • Pivot points sirf technical analysis par mabni hain aur fundamental factors jaise economic news, earnings reports, ya geo-political events ko nahi ghor karte.
   • Fundamental factors technical signals ko override kar sakte hain aur traders ko trading decisions banate waqt holistic approach istemal karna chahiye.