Pivot Point

A pivot point is a price level of significance in technical analysis of a financial market that is used by traders as a predictive indicator of market movement. A pivot point is calculated as an average of significant prices (high, low, close) from the performance of a market in the prior trading period. If the market in the following period trades above the pivot point it is usually evaluated as a bullish sentiment, whereas trading below the pivot point is seen as bearish.

It is customary to calculate additional levels of support and resistance, below and above the pivot point, respectively, by subtracting or adding price differentials calculated from previous trading ranges of the market.

A pivot point and the associated support and resistance levels are often turning points for the direction of price movement in a market. In an up-trending market, the pivot point and the resistance levels may represent a ceiling level in price above which the uptrend is no longer sustainable and a reversal may occur. In a declining market, a pivot point and the support levels may represent a low price level of stability or a resistance to further decline.

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Other articles related to "pivot point, point":

Inverted Pendulum - Equations of Motion - Stationary Pivot Point
... In a configuration where the pivot point of the pendulum is fixed in space the equation of motion is similar to that for an uninverted pendulum ... The pendulum is assumed to consist of a point mass, of mass, affixed to the end of a massless rigid rod, of length, attached to a pivot point at the end opposite the point mass ... The resulting equation The moment of inertial for a point mass In the case of the inverted pendulum the radius is the length of the rod ...
Inertia Tensor - Scalar Moment of Inertia of A Simple Pendulum
... The weight of the mass is a force that accelerates it around the pivot point ... This weight also generates a torque T on the pendulum around the pivot point and the acceleration of the mass a = rα is defined by the angular acceleration α of the pendulum, therefore where ... quantity I = mr2 is the moment of inertia of the pendulum mass around the pivot point ...
Inverted Pendulum
... which has its center of mass above its pivot point ... It is often implemented with the pivot point mounted on a cart that can move horizontally and may be called a cart and pole ... to remain upright this can be done either by applying a torque at the pivot point, by moving the pivot point horizontally as part of a feedback system, changing the rate of ...
The Italian Job - Ending
... Surrey, was to Break and remove two large side windows just aft of the pivot point and let the glass fall outside to lose its weight ... the bus's front tires, to reduce the bus's rocking movement about its pivot point ... Drain the fuel tank, which was aft of the pivot point that changes the balance enough to let a man get out and gather heavy rocks to load the front of the bus ...
Inertia Tensor - Scalar Moment of Inertia of A Rigid Body - Measuring Moment of Inertia
... Suspend the part from a convenient pivot point P so that it swings freely in a plane perpendicular to the direction of the desired moment of inertia ... Determine the distance r from the pivot point P to the center of mass C of the part ... pendulum show that the natural frequency of oscillation of the part as it swings from the pivot point is given by Thus, if the period of oscillation is measured to be τ = 2π/ω, then the moment of inertia about the ...

Famous quotes containing the words point and/or pivot:

    The success of a party means little more than that the Nation is using the party for a large and definite purpose.... It seeks to use and interpret a change in its own plans and point of view.
    Woodrow Wilson (1856–1924)

    The seagull’s wings shall dip and pivot him,
    Shedding white rings of tumult, building high
    Over the chained bay waters Liberty—
    Then, with inviolate curve, forsake our eyes
    Hart Crane (1899–1932)