What Pivot Points are?
The pivot point is daily calculated. It identifies areas of resistances and supports. Although its calculation is mathematical, the pivot point also plays a very important psychological role for many traders who will buy or sell on these levels. Similarly as a resistance or a support, the pivot is a line, although it is better to talk about areas. But remain simple. This is the point at which a trend can change. If the pivot point is broken on the rise, it is a signal to buy. On the other hand, it can also be a signal to sell. It is important to note that the pivot point is mainly used in the short term to take advantage of small price changes. Read more about Using Pivot Points Levels