Please refer to our last article on Technical indicator – Moving Averages. Without wasting any more time lets get back on to the topic.
Pivot as a technical indicator helps in identifying support to many traders in predicting what should be the entering and closing level while trading. Pivot point mostly contains a level in which trading occurs. If trading rise high through the pivot level and all associated levels, this is a condition known as “breakout” by many traders, where the price shifts either higher or lower depending on the direction of the breakout.
Daily pivot points and their associated or resisted levels are calculated on the basis of previous trading day’s high, low, opening, and closing price of a security. Want to see how this works, then you can see it by yourself as pivot point are published on each day widely and with the pivot point indicators you can directly just put it up on a chart and it will do all the calculation on its own and will reveal you the points of the level of entry-exit, etc.