DEFINITION of 'Structural Pivot'

A price-bar formation that gives real-time price signals of support and resistance. When a series of price bars reverses direction, it is considered a structural pivot (not a calculated pivot).

The price bar has an open, high, low and close. The pivot is composed of a minimum of three bars and occurs in every time frame. The pivot lows and highs are used to draw trendlines to show support, resistance and trend direction.

Structural Pivot



BREAKING DOWN 'Structural Pivot'

Think of the price pivot as an axis, which is a shaft that supports something that turns. Every pivot is a price turn and shows support (a pivot low) or resistance (a pivot high) for that time frame.

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RELATED FAQS
  1. What are the differences between a Pivot and a Pivot Point?

    Understand the basics of pivot trading and the key difference between the calculation of the pivot and the pivot points derived ... Read Answer >>
  2. What are the best technical indicators to complement a forex Pivot Point strategy?

    Learn the best technical indicators used by traders and analysts to complement a forex trading strategy based on daily pivot ... Read Answer >>
  3. 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 ... Read Answer >>
  4. 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 Answer >>
  5. Why are forex Pivot Points important for traders and analysts?

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