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 Pivot (P) in current period. The 'Support' ( Sx ) and 'Resistance' ( Rx ) pivots are calculated based on above equation. There are many variations used, but ''Traditional'' is the first, and I think most commonly used.
Some very cool aspects: Pivots do NOT repaint, they are plotted at period beginning and stay till end. Backtesting is easy, change "Historical Pivots" setting as far back as you want. Clutter free, Interpretation free, Labor free, and best of all, for FREE on TV :)
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 Pivot , which is obvious in above chart. Strength of a trend can be gauged by which Pivots 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 Pivots to get a bearing.
How to Deploy them? Back in the day Pit Traders had index cards with Pivot Points (values). Trading View has a free indicator "Pivot Points Standard" which I use. For a detailed Tutorial on How to Use Pivots, see these Ideas below:
Chapter 1: Intro and Setup
Chapter 2: Adding "Mid Pivots"
Chapter 3: Plotting Future Pivots
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Beautiful action around the Daily S1 Pivot Yeah, I guess there is some money playing these "Pivot Points"
What do you think about opening long positions around 6750 - 6800 trying to catch the bounce there..
Thanks