The term "Pivot" is used a lot, often meaning different things. What I am showing is the ''Old-School'' definition of that term. The current Pivots lines are calculated based on the Last Period.
Pivots are as simple as this: (H+L+C)/3 of the previous period = Center Pivot (P) in the current period. The 'Support' ( Sx ) and 'Resistance' ( Rx ) pivots are derived from the above. TV has several different "Styles" you can use, I am using the "Classic" style here.
Why are they useful? Pivots do NOT "repaint": they are drawn at beginning of period and remain for entire period. Pivots are mathematically simple yet they capture the recent "Sentiment" and "Momentum". Pivots are followed my numerous traders and banks that trade large amounts, so they count.
What do they tell you? The seem to make good TARGETS for a move, and often lose energy there. Many traders look to take profits at a Pivot , which is obvious in above chart. Pivots are important for "Swing" trades, which can last days, weeks, months.
See my Previous Tutorials here:
Chapter 1 (the basics):
Chapter 2 (add Mid-pivots):
Chapter 3 (future pivots):
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Updated Daily Pivots (as the live chart doe not add new periods) we are right on the Daily Central currently.
If I could have only ONE indicator on my charts, it would be the Classic Style Pivots, no doubt it ~!
Pop-A-Bear
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I forgot all about these under TA's "built-ins" - TA calls it "swing trading." And now that I've learned a lot lately (studying every day) from you and some other gents, I think I'll put this to the test again.
Good stuff motif.