What is this pivot point all about?



A pivot point is a significant price level in technical analysis of a financial market, and is widely used in forex trading. The pivot point is used by currency traders as a predictive indicator of the forex market movement. It is calculated as an average of significant prices (high, close, and low) from the performance of the currency market in the preceding trading time period. If the forex market in the following period trades above the pivot point it is usually considered to be a bullish signal, whereas trading below the pivot point is seen as a bearish sign.

The pivot point is a leading indicator providing a forecast of potentially new forex market highs or lows within a set timeframe.