What are Pivot Points?
Pivot Points are a technical analysis indicator used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the high, low and closing prices from the previous trading day.
How to use them
- Pivot Point (PP): The main support/resistance level. Price above PP indicates bullish sentiment, below indicates bearish.
- R1, R2, R3: Resistance levels. Good areas to take profits or short sell.
- S1, S2, S3: Support levels. Good areas to enter buy positions.