Bab 4 Classic Pivot Point
The classic pivot point is calculated by adding the previous session's high, low, and closing price and then dividing the result by three. This average is used as the main pivot point for the next day.
Determining support and resistance levels is based on additional values that were calculated using previous prices. Additional levels can be calculated using the following rules:
Support Level 1: (2 x classic pivot point) - the previous session's high
Support Level 2: Classic Pivot Point - (high of the previous session - low of the previous session)
Support Level
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