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==== Pivot Point ==== | ==== Pivot Point ==== | ||
- | The point at which [[:glossary_r#resistance|resistance]] disintegrates and the stock price begins to rise past the prior resistance level. This point can be considered the optimal time to buy as the bulls are gaining strength. | + | A support or resistance level is sometimes described as a pivot point. When price drops down to reach a support level, it typically pivots higher; similarly, when price comes up to a resistance level it generally pivots lower. When price actually breaks through at the pivot point instead of pivoting, this suggests further movement in that direction. See our ChartSchool article on [[:chart_analysis:support_and_resistance|Support and Resistance]]. |
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+ | ==== Pivot Points ==== | ||
+ | Originally used by floor traders, Pivot Points use the prior period's high, low, and close to estimate future support and resistance levels. Adding a Pivot Points overlay to the chart allows analysts to easily see when price action moves above or below these potential support and resistance levels. See our ChartSchool article on [[:technical_indicators:pivot_points|Pivot Points]]. | ||
==== Point & Figure Buy Signal ==== | ==== Point & Figure Buy Signal ==== |