Pivot points on forex

There is another proven to work technique for discovering support/resistance levels.
Considering previous day's candle you can calculate a so-called pivot line and its additional pivot support/resistance levels. This method works only on day charts.

The whole point is that the rate should bounce off of a pivot line. With this technique you can predict the trend of the current day. If the rate is higher than pivot line then probably it won't go lower it and vice-versa.

There is also some additional support/resistance levels. They are called S1, S2, S3 for support and R1, R2, R3 for resistance. Between them lies pivot point level (P).

Let's see the formulas for classic pivot line calculation:

P=(dh+dl+dc)/3
R1=2*P-dl
S1=2*P-dh
R2=P+(dh-dl)
S2=P-(dh-dl)
R3=P+2*(dh-dl)
S3=P-2*(dh-dl)

dl means Lowest price of previous day
dh means Highest price of previous day
dc means Close price of previous day

This is pretty simple. Actually I found this pivot points useful in my EA. When I tried to use this formulas with my chart I didn't manage them to work. But I never give up so I began to reflect what could be wrong. The trick was to match the correct Time Zone for pivot point calculation. In different countries the day closes at different times so we can get 24 pivot point lines across the globe and they all will be right.

Calculate your pivot points and try to find which one will be best for you. I believe the Time Zone should be chosen individually for every currency pair.