What are pivot points in day trading?

One of the most widely used technical indicators in day trading, pivot points are a system of seven lines at different price levels that act as support and resistance levels.

What is a pivot point in trend line analysis?

Similar to other forms of trend line analysis, pivot points focus on the important relationships between high, low and closing prices between trading days; that is, the previous day's prices are used to calculate the pivot point for the current trading day.

What is a pivot point?

We use the Pivot Point (PP). When the price is above the Pivot Point, the market is considered bullish. If the price is below the Pivot Point, the market is considered bearish.

What is the target for a pivot point breakout trade?

The target for pivot point’s breakout trade is most likely to be the next pivot point level. If one entered a long position after the price break R1, stop loss will be below R1 and the next immediate target will be R2. Pivot points are a technique used by a trader to help determine potential support and resistance area.