Pivot Point Indicator
Pivot Point Indicators are commonly used in trading to identify potential support and resistance levels, allowing traders to make informed decisions on entry and exit points. A basic trading setup includes determining the daily pivot point by calculating the average of the high, low, and close prices from the previous day. Traders often look for buy signals when the price is above the pivot point, especially if it bounces off support levels, while sell signals are considered when it is below the pivot point, particularly if it reacts to resistance levels. Additional confirmation can come from complementary indicators like moving averages or RSI to enhance the reliability of the setups.