what is pivot

In technical analysis, what is pivot point is a crucial support. Or resistance level derived from the previous trading session’s high, low, and closing prices. Traders use pivot points to identify potential market turning points and to set entry and exit levels. The central pivot point is calculated as the average of the high, low, and close prices. And from this, additional support (S1, S2) and resistance (R1, R2) levels are established. It points are especially popular among day traders, as they provide a clear framework for anticipating price movements and making trading decisions. When the price moves above  point, it indicates bullish sentiment, while a move below suggests bearish sentiment. Using points helps traders to spot market trends, plan their trades, and manage risks effectively. Understanding and applying pivot points can enhance trading strategies and improve market analysis.