Pivot Points

Pivot Points is a method for calculating support and resistance levels. Resistance and support levels indicate where a major price movement is expected. As a trend indicator, it indicates an upward movement, for instance, if the pivot point price is broken in, then the market is bullish, and vice versa. Pivot points are short-term trend indicators, however and therefore useful for only one day. The second method is to use pivot point price levels to enter and exit the markets.