Pivot Point

Description

The Pivot Point Indicator is a widely used technical analysis tool that helps traders identify potential support and resistance levels in the market. It provides a reliable framework for determining the overall market trend across different timeframes, making it a valuable tool for both intraday and positional traders.

A pivot point is calculated by averaging the high, low, and closing prices from the previous trading session, creating a central level around which price action can be analyzed. Once the pivot point is determined, support and resistance levels are derived from this calculation, offering key insights into where price may find buying or selling pressure.

Key Features:

• Market Trend Indicator: The pivot point helps traders understand whether the market is in an uptrend or downtrend based on where the current price is in relation to the pivot level.
• Multiple Timeframes: It can be applied across various timeframes, including intraday, daily, weekly, and monthly charts, offering flexibility to different trading styles.
• Support & Resistance Levels: By calculating the pivot point, traders can also determine multiple support and resistance levels (S1, S2, R1, R2), which serve as crucial decision-making points for entering or exiting trades.
• Simple and Effective: The pivot point provides a clear, uncomplicated way to assess market conditions without needing complicated indicators. Its simplicity makes it accessible to both beginner and seasoned traders.