Understanding Pivot Points: Standard vs Fibonacci
What Are Pivot Points? Pivot points are widely used technical analysis indicators that help traders determine potential support and resistance levels in the market. They are particularly useful in identifying price levels at which the market could reverse, allowing traders to plan their entry and exit points. Two of the most popular types of pivot points are Standard Pivot Points and Fibonacci Pivot Points . Pivot points are calculated based on the previous day’s high, low, and closing prices, and they are used to predict future support and resistance levels. These are static levels that traders use to gauge where the price could move in the future. They help traders assess bullish or bearish market conditions and spot key levels for potential reversals. In this blog, we’ll explore what each of these indicators is, how they differ, and how traders can use them effectively. There are different types of pivot points, but the most common are Standard Pivot Points