What is Axis Point in Forex?

2023-06-05
Summary:

The axis point of the forex is used to identify important support and resistance levels. These tools help forex traders achieve success.

What is the Axis Point of Forex?

Professional forex traders and market makers use pivot points to identify important support and resistance levels. The pivot point is particularly suitable for short-term traders, as it can be used to determine the price of a pullback during small price fluctuations. Classified by transaction type, both range traders and breakthrough traders can use the pivot point indicator: range traders use the pivot point to confirm reversal points; Breakthrough traders use pivot points to identify key breakthrough positions.

Point

The forex pivot point is a technical analysis tool commonly used to identify turning points in trends. It can be used to predict the upward or downward trend of prices and help traders make more informed decisions.


The method to find the pivot point of forex is as follows:

1. Finding the high and low points in the early stage: The first step is to find the high and low points in the early stage prices, which are often considered important levels of support and resistance.


2. Calculate the pivot point: The following formula is required to calculate the pivot point:

Pivot Point=(Previous High+Previous Low+Previous Closing Price)/3

This calculation result will become the pivot point.


3. Calculate support and resistance levels: After calculating the axis point, the following formula can be used to calculate support and resistance levels:

Resistance 1=(2 x Pivot Point) - Previous low point

Support 1=(2 x Pivot Point) - Previous High Point

Resistance 2=(Pivot Point - Support 1)+Resistance 1

Support 2=Pivot Point - (Resistance 1- Support 1)

Resistance 3=(Pivot Point - Support 2)+Resistance 2

Support 3=Pivot Point - (Resistance 2- Support 2)


These support and resistance levels will help traders determine the upward and downward trends of prices, as well as at which level there may be buying or selling opportunities.


Please note that the forex pivot point is only a technical analysis tool and cannot guarantee successful prediction of price trends. Therefore, when using it, it should be combined with other indicators and analysis methods to make comprehensive judgments and decisions.


【 EBC Platform Risk Reminder and Disclaimer 】: There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice.

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Risk Warning: Trading Contracts for Difference (CFDs) are complex financial instruments and come with a high risk of losing money rapidly due to leverage. Trade on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade Forex and CFDs, you should carefully consider your trading objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial trading capital. We recommend that you seek independent advice and ensure you fully understand the risks involved before making any investment decision. Please read the relevant risk disclosure statements carefully before trading.
EBC Financial Group is a co-brand shared by a group of entities including:
EBC Financial Group (SVG) LLC is authorized by the St.Vincent and the Grenadines Financial Services Authority(SVGFSA),and the company registration number is 353 LLC 2020. with registered address at Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines.
Other Relevant Entities
EBC Financial Group (UK) Limited is authorised and regulated by the Financial Conduct Authority. Reference Number: 927552. Website: www.ebcfin.co.uk
EBC Financial Group (Australia) Pty Ltd (ACN: 619 073 237) is authorised and regulated by the Australian Securities and Investments Commission (Number: 500991). EBC Financial Group (Australia) Pty Ltd is a related entity of EBC Financial Group (SVG) LLC. The two entities are managed separately. The financial products and services offered on this website are NOT provided by the Australian entity and no recourse against the Australian entity is available.
EBC Financial Group (Cayman) Limited is licensed and regulated by the Cayman Islands Monetary Authority (Number: 2038223). Website: www.ebcgroup.ky
Business Address: The Leadenhall Building, 122 Leadenhall Street, London, United Kingdom, EC3V 4AB. Email Address : [email protected]. Telephone : +44 20 3376 9662
Disclaimer: EBC Financial Group explicitly does not participate in any cryptocurrency activities or offer Crypto Contracts for Difference (CFDs). Our financial services solely pertain to traditional instruments. Clients are advised that any references to crypto-related services using the EBC name are inaccurate and unauthorized. Any reference to past performance is not indicative of future performance. The information contained in this website is provided for reference only and does not constitute any investment advice.
Regional Restrictions: EBC does not offer any services to citizens and residents of certain jurisdictions including: Afghanistan, Belarus, Burma (Myanmar), Canada, Central African Republic, Congo, Cuba, Democratic Republic of the Congo, Eritrea, Haiti, Iran, Iraq, Lebanon, Libya, Malaysia, Mali, North Korea (Democratic People's Republic of Korea), Russia, Somalia, Sudan, South Sudan, Syria, Ukraine (including Crimea, Donetsk, and Luhansk Regions), the United States, Venezuela, and Yemen. For more information, please check out our FAQs.
Compliance Disclosure：The website can be accessed globally and is not specific to any entity. Your actual rights and obligations will be determined based on the entity and jurisdiction that you choose to be regulated.There may be local laws and regulations which prohibit or limit your rights to access, download, distribute, disseminate, share or otherwise use any or all of the documents and information published on this website.
Risk Warning: Trading Contracts for Difference (CFDs) are complex financial instruments and come with a high risk of losing money rapidly due to leverage. Trade on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade Forex and CFDs, you should carefully consider your trading objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial trading capital. We recommend that you seek independent advice and ensure you fully understand the risks involved before making any investment decision. Please read the relevant risk disclosure statements carefully before trading.
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