What is pivot point trading?

Pivot point trading involves looking at the position of the current market price, relative to price levels established for the asset during the prior session. If market prices are trading above pivot point levels, the outlook for sentiment is bullish (positive) and traders are likely to target the next level of resistance.

What is a floor trader pivot?

Acalculated pivot, often called a floor trader pivot, is derived from a formula using the previous day's high, low and closing price. The result is a focal price level about which price action is likely to turn, either up or down. Calculated pivots represent potential turning points in price, while price pivots are actual historic turning points.

What is a pivot price?

A pivot is a significant price level known in advance which traders view as important and may make trading decisions around that level. As a technical indicator, a pivot price is similar to a resistance or support level. If the pivot level is exceeded, the price is expected to continue in that direction.

What are pivots & pivot points?

There are pivots and pivot points. These terms may mean different things to different people. A pivot means an important price level to a trader, like an inflection point, where they expect price to either continue in the current direction or reverse course. Some traders view prior high points or low points in the price as a pivot.