Pivot

Pivot or pivot point is calculated via numerical averages of a security’s high, low and closing prices and is used as a predictive tool. Its usage is similar to a resistance or support level. If a security’s price breaks through a pivot point on strong volume, then it is considered indicating a strong trend in the direction of the breakout and if a security’s price encounters strong resistance/support at a pivot point and fails to break through, then it may indicate weakness in the trend or more consolidation.

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