Pivot Points Breakout Technical Indicator

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

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

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

Day traders use the calculated commodity trading pivot support and resistance levels to determine levels of entry, stop loss level & profit taking level, by trying to determine where the majority of traders may be doing the same thing.

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

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

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

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

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

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

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

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

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

Resistance 3

Resistance 2

Resistance 1

Commodity Pivot Point

Support 1

Support 2

Support 3

Pivot Points Breakout Indicator - Pivot Support & Resistance Areas