Glossary Term

Pivot Point

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Pivot points are a trend-based technical indicator used by chartists to figure out the overall trend direction of a market. Pivot points are calculated by taking an average of the opening, closing, high and low prices from the previous period and plotting them as a trendline over the existing price action. When the price trades above this line it’s considered as being a bullish sign, when it trades below it is considered as being a bearish sign. Crossover of price above or below the line are considered to be signals of imminent trend reversals.

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