What is a Pivot?
The word "Pivot" is used a lot, meaning many different things.
What I am showing is the ''Old-School'' definition of that term.
This "indicator" has been in use since 1970's with great results.
Pivots are as simple as this:
(H+L+C)/3 of the previous period = Center (P) in the current period.
The 'Support' ( Sx ) and 'Resistance' ( Rx ) are derived from the above.
There are many variations, but ''Traditional'' is the first, and most widely used.
Some very cool aspects:
do NOT repaint, they are plotted at period beginning and stay till end.
Back-testing is easy, change "Historical Pivots" setting as far back as you want.
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What do they tell you?
They seem to make good TARGETS for a move, and often lose energy there.
Many traders will look to take profits at a , which is obvious in above chart.
Strength of a trend can be gauged by which the asset is hitting most often.
Who uses them?
Many, many traders still use them, as do Banks and Money Managers.
Swing traders looking for Daily, Weekly, or Monthly trades, set and forget.
Even Fibonacci fans such as myself will glance at the to get a bearing.
How to Deploy them?
Back in the day Pit Traders had index cards with (values).
Trading View has a free indicator "Pivot Points Standard" which I use.
For a detailed Tutorial on How to Use , see these Ideas below:
Chapter 1: Intro and Setup
Chapter 2: Adding "Mid Pivots"
Chapter 3: Plotting Future Pivots
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In crypto, I would not give much weight to such long tf pivots, monthly about the longest I would use. For longer periods, maybe stick with Moving Averages and such?