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.

BREAKING DOWN '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.

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RELATED FAQS
  1. What is a common strategy traders implement when using the Zig Zag Indicator?

    The zig zag indicator follows the trend while reducing noise in a stock or the market. Traders can use it to assist in holding ... Read Full Answer >>
  2. How are Pivots interpreted by analysts and traders?

    Analysts and traders interpret pivots in much the same way as they interpret support and resistance levels. Pivots heavily ... Read Full Answer >>
  3. 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 ... Read Full Answer >>
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