| Pivot Points | |
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The Pivot Point is defined as the average of the high, low and
settlement price, and is plotted as the green line across the chart.
The first support and resistance lines are used mainly in intraday trading in
the pits. Because our service is used mainly by technical and position traders, we have elected
to use the second level of support and resistance in our graphs. The blue line
above the pivot point is the second resistance level and is defined as
the pivot point plus the high price minus the low price. The red line below
the pivot point is the support level and is defined as the
pivot point minus the high price plus the low price.
Pivot points are used primarily as support and resistance levels
with the pivot point the best support resistance level.
Here is the formula used in pivot points (this is for each bar, regardless as to if it is a day, 10 min., 30 min., etc.):