In the days before ubiquitous computers, floor traders needed a simple way to calculate intraday levels of support and resistance. Enter pivot points. Pivot points use the high, low, and closing price of the previous day to project support and resistance levels for the current day. For instance, the central pivot point is calculated as the (high + low + close) / 3, or effectively the average price of the previous day. As a general rule of thumb, if price opens above this central pivot point (often called the “fulcrum” of the day’s trade), it is more likely to trend higher and vice-versa. Daily pivot points are still ... (full story)