Chapter 1 What are Pivot Points?
Pivot Points are significant support and resistance levels that can be used to determine potential trades. The pivot points come as a technical analysis indicator calculated using a financial instrument’s high, low, and close value.
The pivot point’s parameters are usually taken from the previous day’s trading range. This means you’ll have to use the previous day’s range for today’s pivot points.
Or, last week’s range if you want to calculate weekly pivot points or, last month’s range for monthly pivot points and so on.
Next….
We’ll dive a little bit into the Pivot Point calculation, which only needs high, low, and close prices of the previous trading session.
