Indicator Type: Overlay (Main Window)
Chart Type: Interactive Charts Only
The pivot itself can be used as somewhat of a test price for the short-term trend. The pivot point represents a weighted average of the previous session (default is previous day’s session) since it is the average of the high, low and close. If the market rallies above the pivot point, for example, the market may be indicating some strength. A weak market would be suggested by a price move below the pivot point.
Pivot points are used primarily as support/resistance numbers. Of the first pivot values, the pivot point itself is the best support/resistance level. The 1st, 2nd, and 3rd support/resistance levels have less reliability. All these pivot numbers are very popular on the exchange floors and are used by a significant number of traders.
Previous: Day, Week, Month. Identifies which previous session values should be used for study computation (previous high, previous low, previous close). Default setting is previous Day.