We have been talking about pivot points earlier in the week and it is time for us to be brought back to the topic. At this point we have come to the question – how do pivot points work and where can we use them?
Well, I can tell you that pivot points are usually used as a backup support and resistance levels. They can be used as the levels from which the price bounces off to the different direction. As they are already counted by the platforms themselves it is easy for us to use them for reading the signals of the graph.
Here is the example of the movements and the signals that we might be getting from them.