Pivot Points Breakout Indicator

Indices Pivot Support and Resistance Indicator Levels is a set of indicators used to determine potential turning points or potential indices breakout points, also known as " indices pivots" or indices pivot point. These Indices Pivot Support and Resistance Levels are calculated to determine points which the indices trend could change from a "bullish" to "bearish trend or from a "bearish" to "bullish trend." Indices traders use these Indices Pivot Support and Resistance Levels as zones of support and resistance.

These Indices Pivot Support and Resistance Levels are calculated as the average of the high, low and close from the previous session:

Indices Pivot Point = (High + Low + Close) / 3

Day indices traders use the calculated indices pivot support and resistance levels to determine levels of entry, stop loss level and profit taking level, by trying to determine where the majority of indices traders may be doing the same thing.

A indices pivot point is a indices price level of significant indices technical analysis that is used by traders as a predictive or leading indicator of stock indices price movement. Indices Pivot Support and Resistance Indicator is calculated as an average of significant indices prices (high, low and close indices price) from the stock indices trading market prior trading period. If the indices prices in the following trading period trade above the central indices pivot point it is interpreted as a bullish indices trend, whereas if stock indices price trade below the central indices pivot point is interpreted as bearish.

The central indices pivot point is used to calculate additional levels of support and resistance, below and above central indices pivot point - by either subtracting or adding stock indices price differentials calculated from previous day trading ranges.

A indices pivot-point & the indices pivot support and resistance levels are often turning points for the direction of stock indices price movement.

• In an upward indices trend, the indices pivot point indicator & the indices pivot resistance levels - represent a ceiling level for the stock indices price - if stock indices price goes above this level the upward trend is no longer sustainable and a indices trend reversal is likely to happen.

• In a downwards indices trend, the indices pivot-point & the indices pivot support levels may represent a low for stock indices price level or a resistance to further stock indices price decline.

The central index pivot can then be used to calculate the support & resistance areas as follows:

Indices Pivot Support and Resistance Indicator Levels consist of a central indices pivot point level surrounded by three support levels below it and three resistance areas above it. Indices Pivot Support and Resistance Levels provide a quick method for stock indices traders to get a general idea of how the stock indices trading market will be moving during the course of the day by using a few simple calculations based on the previous stock indices price close - Previous Day Close Breakout Indices Strategy and Market Open Indices Trading Strategies.

Indices Pivot Support and Resistance Indicator Levels is considered as a leading indices technical indicator rather than a lagging indicator. All that is required to calculate the indices pivot support and resistance levels for the current day is the previous day high, low, and close indices prices. The 24-hour cycle indices pivot support and resistance levels in this indicator are calculated according to the following formulas:

The central index pivot can then be used to calculate the support & resistance areas as follows:

Resistance 3

Resistance 2

Resistance 1

Indices Pivot Point

Support 1

Support 2

Support 3

Indices Pivot Support and Resistance Levels - Indices Pivot Support and Resistance Indicator Levels