Commodity Trading Pivot Support & Resistance Levels

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

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

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

Day commodity traders use the calculated commodity 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 commodity traders may be doing the same thing.

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

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

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

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

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

The central commodities pivot point can then be used to calculate the resistance and support regions as follows:

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

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

The central commodities pivot point can then be used to calculate the resistance and support regions as follows:

Resistance 3

Resistance 2

Resistance 1

Commodity Trading Pivot Point

Support 1

Support 2

Support 3

Pivot Points Breakout Commodities Trading Indicator - Commodity Trading Pivot Support & Resistance Areas