All similar indicators are based on the idea that "From the values of the previous day (days) the point of the trend change can be calculated". In other words, these indicators try to calculate the point of trend rotation "If the price is below this point, then there is a probability that the price will go down. If the price is above the pivot, then there is the probability that the price will go up". Such methodologies never gave good results. Its only improvement is the application of Pivot for many currency pairs at the same time based on the "currencies-allies" principle. Commonly, supporters of the pivot theory take it not from calculations, but from Dow Jones news. Usually, the Pivot for the next day is given by Rudolph Axel, the chairmen of Bundesbank.
PIVOT General Description The pivot point is the level at which the market direction changes for the day. Using some simple arithmetic and the previous days high, low and close, a series of points are derived. These points can be critical support and resistance levels. The pivot level, support and resistance levels calculated from that are collectively known as pivot levels.
