What is Pivot Point

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A Pivot point is a price level that is used by traders as a possible indicator of market movement.  A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames.

The pivot point itself is simply the average of the high, low and closing prices from the previous trading day.

The pivot point is the basis for the indicator, but it also includes other support and resistance levels that are projected based on the pivot point calculation.