- Pivot points are technical analysis indicators derived from the average of the high, low, and closing prices from the previous trading period.
- Traders use pivot points to identify potential support and resistance levels, as prices tend to pause or change direction around these points.
- Pivot points are often used in conjunction with other indicators to enhance market analysis and inform trading decisions.
Heya folks, just bumping in with a quick one. I've been hearing this term floating around a lot called 'pivot points'. It's been bugging me for a while 'cause I can't handle the ins and outs of it. How do these pivot points work? What witchcraft do they use to analyze the market? Any help would be appreciated! Cheers.
Pivot points are kinda like a map for traders, but they're not foolproof. They use the average of high, low, and close from a previous period to predict future support and resistance levels. Problem is, markets are wild beasts – they don't always follow the map. Sometimes, relying too much on pivot points can lead you down the wrong path if you're not careful.
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