The word "Pivot" is used a lot, meaning many different things. What I am showing is the ''Old-School'' definition of that term. This "indicator" has been in use since 1970's with great results.
Pivots are as simple as this: (H+L+C)/3 of the previous period = Center Pivot (P) in current period. The the 'Support' ( Sx ) and 'Resistance' ( Rx ) pivots are calculated based on above equation. There are many variations these days, but ''Traditional'' is the first, and I think most commonly used.
What do they tell you? The seem to make good TARGETS for a move, and often lose energy there. Many traders will look to take profits at a Pivot, which is obvious in above chart. The real beauty is Pivots do NOT repaint, they are drawn at period beginning.
Who uses them? dMany, many traders still use them, as to Banks and Money Managers. Swing traders who look for Daily, Weekly, or Monthly trades, set and forget. Even Fibonacci fans such as myself will glance at the Pivots to get a bearing.
For a Tutorial on How to Use Pivots, see this Idea (and other chapters linked within):
Hello, thanks for the tips. How do you get TV to show the colored numbers on the right side? My "Pivot Points Standard" doesnt show them.
Pop-A-Bear
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I agree. I like glancing at them too to get a good "overall" feel on where things are going. I'm still playing around with "your' fib ways, but only having minor success with it. ;) I have the fib setup correctly (at least I think I do) its "high/low) points that I pick always seem to be different from yours? Hmm??? :)