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| ===== Introduction ===== | ===== Introduction ===== | ||
| - | **Pivots Points are significant levels chartists can use to determine directional movement and potential support/resistance levels.** Pivot Points use the prior period's high, low and close to estimate future support and resistance levels. In this regard, Pivot Points are predictive or leading indicators. There are at least five different versions of Pivot Points. This article will focus on Standard Pivot Points, Demark Pivot Points and Fibonacci Pivot Points. | + | **Pivot Points are significant levels chartists can use to determine directional movement and potential support/resistance levels.** Pivot Points use the prior period's high, low and close to estimate future support and resistance levels. In this regard, Pivot Points are predictive or leading indicators. There are at least five different versions of Pivot Points. This article will focus on Standard Pivot Points, Demark Pivot Points and Fibonacci Pivot Points. |
| Pivot Points were originally used by floor traders to set key levels. Like modern-era day traders, floor traders dealt in a very fast moving environment with a short-term focus. At the beginning of the trading day, floor traders would look at the previous day's high, low and close to calculate a Pivot Point for the current trading day. With this Pivot Point as the base, further calculations were used to set support 1, support 2, resistance 1, and resistance 2. These levels would then be used to assist their trading throughout the day. | Pivot Points were originally used by floor traders to set key levels. Like modern-era day traders, floor traders dealt in a very fast moving environment with a short-term focus. At the beginning of the trading day, floor traders would look at the previous day's high, low and close to calculate a Pivot Point for the current trading day. With this Pivot Point as the base, further calculations were used to set support 1, support 2, resistance 1, and resistance 2. These levels would then be used to assist their trading throughout the day. | ||
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| {{:technical_indicators:pivot_points:pp-010-shch.png|Pivot Points - SharpCharts}} | {{:technical_indicators:pivot_points:pp-010-shch.png|Pivot Points - SharpCharts}} | ||
| - | ===== Further Study ===== | + | For more details on the parameters used to configure Pivot Points overlays, please see our [[https://support.stockcharts.com/doku.php?id=sharpcharts:reference#pivot_points|SharpCharts Parameter Reference]] in the Support Center. |
| - | John Person's //A Complete Guide to Technical Trading Tactics// has a complete chapter devoted to trading with Standard Pivot Points. Person shows chartists how to incorporate Pivot Point support and resistance levels with other aspects of technical analysis to generate buy and sell signals. | ||
| - | | **A Complete Guide to Technical Trading Tactics**\\ John Person | | ||
| - | | [[https://store.stockcharts.com/products/a-complete-guide-to-technical-trading-tactics|{{:technical_indicators:pivot_points:store_person_technicaltradingtactics.jpg|}}]] | | ||
| - | | [[https://store.stockcharts.com/products/a-complete-guide-to-technical-trading-tactics|{{:store:buynowbuttone.jpg|Buy Now}}]] | | ||
| - | ---- | ||
| ===== Additional Resources ===== | ===== Additional Resources ===== | ||
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| **[[http://stockcharts.com/h-mem/tascredirect.html?artid=\V18\C02\010PIV.pdf|Pivot Points by Jayanthi Gopalakrishnan]]**\\ | **[[http://stockcharts.com/h-mem/tascredirect.html?artid=\V18\C02\010PIV.pdf|Pivot Points by Jayanthi Gopalakrishnan]]**\\ | ||
| Jan 2000 - Stocks & Commodities V. 18:2 (16-22) | Jan 2000 - Stocks & Commodities V. 18:2 (16-22) | ||
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| + | ==== Recommended Books ==== | ||
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| + | John Person's //A Complete Guide to Technical Trading Tactics// has a complete chapter devoted to trading with Standard Pivot Points. Person shows chartists how to incorporate Pivot Point support and resistance levels with other aspects of technical analysis to generate buy and sell signals. | ||
| + | |||
| + | | **A Complete Guide to Technical Trading Tactics**\\ John Person | | ||
| + | | [[https://store.stockcharts.com/products/a-complete-guide-to-technical-trading-tactics|{{:technical_indicators:pivot_points:store_person_technicaltradingtactics.jpg|}}]] | | ||
| + | | [[https://store.stockcharts.com/products/a-complete-guide-to-technical-trading-tactics|{{:store:buynowbuttone.jpg|Buy Now}}]] | | ||
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