Pivots

About Pivot Points

Weekly and monthly Pivot Points (PP) levels are calculated not from the beginning of a week (from Monday) or from the beginning of the month (from the 1st of the month), but, the Pivot Points calculator uses 7-day period for weekly pivots and 30(31)-day period for monthly Pivots.

Pivot Points support and resistance levels are quite popular among traders. They are used in stop-loss strategies and to anticipate a trend reversals. Below you may see a stock chart with Pivot Points support and resistance lines



Pivot Point support and reliance lines are build for the coming trading session:

• for the current day the Pivot Points are based on the previous trading day;
• for the current week the Pivot Points are based on the previous week price data;
• for the current month the Pivot Points are based on the previous month price data.

The mechanics behind Pivot Points are quite simple. The Pivot Point is a middle line around which the trading took place on the previous day. PP Support line shows how strong Bears were on previous day and PP resistance show how strong the Bulls were on the previous day.

This is how technical analysis understand PP levels:

• When you see price traded at Pivot Point line it means that yesterday's Bulls and Bears are balanced today.
• When price is traded above PP and below resistance it tells that Bulls are stronger than Bears, yet, the Bulls are not as strong as they were yesterday.
• When price breaks above PP resistance it tells that Bulls are stronger than Bears and the Bulls are stronger as they were yesterday. We have increasing Bullish power.
• When price is traded below PP and above support it tells that Bears are stronger than Bulls, yet, the Bears are not as strong as they were yesterday.
• When price breaks below PP support it tells that Bears are stronger than Bulls and the Bears are stronger as they were yesterday. We have increasing Bearish power.