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An important technical analysis indicator called a pivot point determines the general direction of the market throughout a range of time periods. For traders and investors, pivot points are invaluable tools that help identify possible price levels, act as critical points of reference when making trading decisions, and provide information about expected levels of support and resistance.

• High: The highest price during the previous trading session.
• Low: The lowest price during the previous trading session.
• Close: The closing price of the previous trading session.
• Pivot Point (PP) = (High + Low + Close) / 3
• First Resistance (R1) = (2 x PP) - Low
• First Support (S1) = (2 x PP) - High
• Second Resistance (R2) = PP + (High - Low)
• Second Support (S2) = PP - (High - Low)
• Third Resistance (R3) = High + 2 x (PP - Low)
• Third Support (S3) = Low - 2 x (High - PP)