Pivot Points

Type

Other indicator

Statement

The "Pivot Point" indicator attempts to identify global trends at different time intervals. The basis is the determination of the reversal points or "pivot points". In addition, resistance lines (R1, R2) and support lines (S1, S2) are plotted for the time series.

Pivot point analysis is a technique for determining key levels to which the course can respond. Pivot points tend to act as support or resistance indicating possibilities of reversals.

Interpretation

The calculated support and resistance levels to the reversal points can be used to determine when to open or close a position. They also serve to determine the range of a market. Conservative traders are looking for an additional confirmation before they enter a position. But regardless of whether reversal points are used alone or in combination with other techniques, they are a useful tool for technical traders.

Default setting

• Period: 28 periods

Example: Pivot Points