Pivot Point
Support and resistance levels calculated from previous prices.
Beginner-friendly explanation
A pivot point is a price level automatically calculated each day to help traders spot key zones. It’s based on the previous day’s high, low, and close.
Example: If today’s pivot point is $1.50, traders will watch this level for potential support or resistance.
Intermediate-level insight
Pivot points come with S1/S2 (supports) and R1/R2 (resistances). They're used in intraday trading to anticipate bounce or rejection zones.
Example: A price breaking R1 with volume may aim for R2, while a rejection below S1 may signal continued downside.
Advanced perspective
Pivot points can be used in high-frequency trading algorithms. Several formulas exist (standard, Woodie, Camarilla, Fibonacci). Their relevance depends on context: volatility, market session, strategy.
Example: In a scalping strategy, Camarilla pivot points offer precise entries in tight ranges.
Technical & Chart Analysis
pivot point, support, resistance, intraday, key levels, S1, R1, Camarilla