A PIVOT POINT is average price of
previous day’s high, low and close prices.
It is used to determine the overall trend of the current market scenario, that is, you can guess the upper (RESISTANCE) and lower (SUPPORT) level of the price moving during current trading.
What is SUPPORT and RESISTANCE ?
RESISTANCE
means if the price of a stock cross
Pivot point and move upward then it
may go upto certain levels that is called RESISTANCE .
In general RESISTANCE is classified as three levels i.e. R1, R2 and R3. Simply we can say if a particular stock cross Pivot Point and moving upwards then first it may reach R1 and beyond R1 there is a possibility to reach R2 and if it cross R2 it may go upto R3.
In general RESISTANCE is classified as three levels i.e. R1, R2 and R3. Simply we can say if a particular stock cross Pivot Point and moving upwards then first it may reach R1 and beyond R1 there is a possibility to reach R2 and if it cross R2 it may go upto R3.
SUPPORT means
if the price of a stock cross Pivot
point and move downward then it
may go upto certain levels that is called SUPPORT. In general SUPPORT is classified as three levels i.e. S1, S2 and
S3. Simply we can say if a particular stock cross Pivot Point and moving
downward then first it may reach S1 and beyond S1 there is a possibility to
reach S2 and if it cross S2 it may go
upto S3.
