Friday, September 19, 2008

Pivot Points

A technical indicator derived by calculating the numerical average of a
particular stock's high, low and closing prices.

The pivot point is used as a predictive indicator.

If the following day's market price falls below
the pivot point, it may be used as a new resistance level.

Conversely, if the market price rises above the pivot point, it may act as the new support level.

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