All and all pivot points are not that hard to understand in the first place.
I know that so far I have been getting hard a heavy on the difficult side of explanation, but today I decided to get over the topic with one and only pivot point explanation that matter for us here and today.
Pros might need to know and understand all of the intricacies of the process, but as I said before pivot points calculator is usually already built into your trading platform and you do not need to actually count them.
As we are not professional trades, but only striving to be them, for now we only need to know the basic information about pivot points.
Pivot points are the technical indicators which are used to determine the overall trends in the market. In its nature pivot points are the average between the high, low and closing price from the previous trading day.
All and all pivot points are not that hard to understand in the first place.
What are they usually used for? Just like any other indicator – for seeing trends in the markets. For seeing where the movements are going to occur and what direction the graph is going to move further.
In case trading is ongoing above the pivot point it is a signal about the bullish market; below the pivot point – it is a signal about bearish tendencies.
Yes – all of our previous lessons have come to this simple statement. And as usual bears and bulls are meeting and determining all of our future in trading.
Technically that is all we need to understand about pivot points in our development as traders at the moment.
