“We become what we behold. We shape our tools, and thereafter our tools shape us.”
― Marshall McLuhan
What is the Pivot Point indicator?
Pivots Points are important levels that traders can use to define directional movement, support and resistance. The Pivot Points are acknowledged as predictive or leading indicators.
How to use the Pivot Point indicator?
The simplest way to use pivot point levels in trading is to use them just like regular support and resistance levels. However to be meaningfully a good support and resistance level should be tested by price repeatedly and the more times the price touches a pivot level and then reverses, the stronger the level is.
A move above the Pivot Point (PP) suggests strength with a target to the first resistance (R1). A break above first resistance (R1) shows even more strength with a target to the second resistance (R2) level. The same principle applies to the downside.
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