Investopedia

Continue to Site »

Pivot Point

Filed Under » , , , ,
Dictionary Says

Definition of 'Pivot Point'

A technical analysis indicator used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the high, low and closing prices from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment.
Investopedia Says

Investopedia explains 'Pivot Point'

A pivot point analysis is often used in conjunction with calculating support and resistance levels, similar to a trend line analysis. In a pivot point analysis, the first support and resistance levels are calculated by using the width of the trading range between the pivot point and either the high or low prices of the previous day. The second support and resistance levels are calculated using the full width between the high and low prices of the previous day.

Related Video for 'Pivot Point'

Articles Of Interest

  1.

    Using Pivot Points For Predictions

    Learn one of the most common methods of finding support and resistance levels.

  2. Pivot Points

    Learn more about this technical indicator and how you can use it as a predictive tool.

  3. Using Pivot Points In Forex Trading

    Learn to combine this powerful tool with traditional technical tools for greater returns.

  4. Pivot Strategies: A Handy Tool For Forex Traders

    Make more educated trading decisions by identifying major turning points.

  5. Gauging The Strength Of A Market Move

    Learn how to apply the ACD technique to a longer time horizon.

  6. Sell Growth Stocks The IBD Way

    Savvy investing is all about learning some smart rules and sticking to them. We give you the rundown.

  7. Candle Sheds More Light Than The MACD

    Read the case against this well-established indicator.

  8. Tales From The Trenches: The Rising Wedge Breakdown

    Learn how to short this reversal pattern with a favorable risk/reward ratio.

  9. 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 on the high, low and closing prices of previous trading sessions, and ...

  10. Find A Trend With The Partial Retrace

    Learn how to spot the pivot point from which a new movement will emerge.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center