Pivot Points Breakout Indicator

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

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

Stocks Trading Pivot Point = (High + Low + Close) / 3

Day stocks traders use the calculated stocks trading 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 stocks traders might be doing the same thing.

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

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

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

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

• In a downwards stocks trend, the stocks pivot point and the stocks trading pivot support levels may represent a low for stocks price level or a resistance to further stocks price decline.

The central stock trading pivot point can then be used to calculate the resistance and support zones as follows:

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

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

The central stock trading pivot point can then be used to calculate the resistance and support zones as follows:

Resistance 3

Resistance 2

Resistance 1

Stocks Trading Pivot Point

Support 1

Support 2

Support 3

Pivot Points Breakout Stock Indicator - Stocks Pivot Support and Resistance Levels