2 replies to this topic

[mss]

[geosing]

Hi MsS, How does one interpret the pivot charts to base any trading decisions? TIA.

[mss]

Hi MsS,

How does one interpret the pivot charts to base any trading decisions? TIA.

<{POST_SNAPBACK}>

Pivot is used by traders to "help" determine the price around which a index/stock will likely change from up to down. "S" support, "R" resistance, is the price where the index/stock would change directions. In the charts, if you do not have a position, one could say a rising BOP & ema above the PIVOT could be a low risk buy point. The pivot could also indicate where to place a stop. A breach of a P, S, or R, would indicate strength in the direction of the break.
Several posters have discussed the use of pivots much better than I have, but they do help. They, as any type of trend line, are only guides and not the holy grail. Pivots are/can used for any time period, and are based on past price action for the time period.
Hope this helped. mss