Pivot Points Breakout Indicator

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

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

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

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

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

In a downwards trend, the pivot-point & the pivot support zones might represent a low for price level or a resistance to further price decline.

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

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

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

The central index pivot then can be used to calculate the support and 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 - Pivot Points Breakout Stock Indicator

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

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Pivot Points Breakout Indicator