// TRADING TERMINOLOGY
What is Pivot Point?
A technical analysis indicator used to determine the overall trend of the market over different timeframes.
In-Depth Explanation
The pivot point itself is simply the average of the high, low, and closing prices from the previous trading day. Trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below indicates bearish sentiment.
Practical Example
"The trader uses daily pivot points to identify potential intraday support and resistance levels."
Related Terms
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