Pivot

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DEFINITION of 'Pivot'

A price level established as being significant either because the market fails to penetrate it or because a sudden increase in volume accompanies a move through that price level.

INVESTOPEDIA EXPLAINS 'Pivot'

As a technical indicator, the pivot price is similar to resistance or support levels. If the price is exceeded, a breakout is expected to occur.

RELATED TERMS
  1. Pivot Point

    A technical analysis indicator used to determine the overall ...
  2. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  3. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  4. Breakout

    A price movement through an identified level of support or resistance, ...
  5. Support (Support Level)

    The price level which, historically, a stock has had difficulty ...
  6. Indicator

    Indicators are statistics used to measure current conditions ...
RELATED FAQS
  1. How are Pivots interpreted by analysts and traders?

    Find out why traders and analysts use pivots in their analysis of price movements and why pivots can be used to create trading ...
  2. How do I calculate forex pivot points?

    Pivot points were originally developed by floor traders in the equity and commodity exchanges. They are calculated based ...
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