What's PIVOT POINT

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What's PIVOT POINT

Post  ilearn2t on Sat Apr 07, 2012 9:55 am

Hello Everyone

"Pivot point" is the level at which the market direction changes on a set timeframe.
Best liked is the "Daily" pivot point.

Using the previous days high, low and close, a series of points are derived. These points can be critical support and resistance levels. The pivot level, support and resistance levels calculated from that are collectively known as pivot levels. Every day the market opens to close, you have the following "Open" "High" "Low" "Close" levels.

You'll get a better idea by looking in the "Daily" data window from within your platforms "History Center"

The reason pivot points are so popular is that they are predictive as opposed to lagging. Simply by using the information of the previous day to calculate potential turning points for the present day's trading.

Because so many traders follow pivot points you will often find that the market reacts to these levels.

Good luck
ilearn2t
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