A set of indicators developed by stock traders in the commodity markets, which serve to determine potential pivot points, are called "pivots". Pivot points in the Forex market are calculated to determine the levels at which the market mood can change from "bullish" to "bearish". Currency traders mark reversal points as support and resistance markers.
Pivot points in the Forex market are calculated as the average value between the high, low and closing prices of the previous trading session: Pivot Point = (High + Low + Close)/3
Since it is believed that pivot points work well in very liquid markets, the Forex spot market may be an ideal place to use them. Intraday traders use calculated pivot points to determine entry levels, stops and take profits, trying to determine levels where most other traders can do the same. Programs for calculating pivot points in the Forex market are free and are available online through retail Forex brokers and third-party websites.