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 Pivot lines are calculated based on the Last Period.
Price is currently stuck between the Monthly and Weekly Central Pivots. The Central pivots indicate the measured sentiment of the last period. Thus we are currently in a state of indecision for this month and week.
I explain the free TV indicator . This plot I have added "Mid-Pivots" between the "R" and "S" pivots. Mid-Pivots are NOT in TV indi, but I show .
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.