Pivot Point

Technical Analysis

Qué significa

A single calculated price level (average of yesterday's high, low, and close) used to project today's support and resistance levels.

If yesterday's high was $102, low $98, and close $100, today's pivot is (102+98+100)/3 = $100. Levels above it act as resistance, below as support.

Beginners expect price to reverse exactly at a pivot. Pivots are zones, not lines; price often overshoots by a tick or two before reacting.

Support — A price level where buying tends to appear and stop a decline. Price has bounced there bef…
Resistance — A price level where selling tends to appear and stop a rally. Price has stalled there befo…