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Indicator

Pivot Points

Define pre-calculated intraday support and resistance levels derived from prior session data to map liquidity zones and guide trade execution.

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Key Takeaways

Pivot Points define key price levels based on prior session high, low, and close.
The central pivot represents session equilibrium.
Support levels S1, S2, and S3 sit below the pivot.
Resistance levels R1, R2, and R3 sit above it.
Price above the pivot suggests bullish intraday bias.

What It Measures

Pivot Points define key price levels based on prior session high, low, and close.
The central pivot represents session equilibrium.
Support levels S1, S2, and S3 sit below the pivot.
Resistance levels R1, R2, and R3 sit above it.
Price above the pivot suggests bullish intraday bias.
Price below suggests bearish bias.

Institutional Use

Pivot Points are used to map probable liquidity zones, execution areas, and short-term positioning behaviour.
They are not treated as predictive reversal levels.
Because they are widely followed, they become self-reinforcing levels where order flow concentrates, making them highly relevant for short-term trading particularly in futures, FX, and index markets.

Key Signals

Price holding above central pivot confirms bullish intraday bias.
Price failing below central pivot confirms bearish bias.
R1 and S1 represent first reaction zones.
R2, R3, S2, S3 represent extended moves requiring momentum confirmation.
Failed breaks of pivot levels often create sharp reversions.

Trading Playbook

Bias filter: use central pivot to define intraday directional bias.
Entry zones: look for rejection or acceptance at S1, R1 levels with confirmation.
Extended targets: R2 and S2 in strong trending sessions.
Exit at next pivot level in the direction of trade or when price accepts back inside a broken level.

When Not to Trade

Avoid pivot level trades during high-impact macro news events.
Do not trade pivot levels mechanically without observing how price behaves when it reaches them.