Pivot Points: The Floor Trader’s Secret
The Concept: Calculates static support and resistance levels (R1, R2, S1, S2) based on the previous period’s open, high, low, and close.
Strategic Advantage: These levels are used by floor traders and institutional algorithms, making them “Self-Fulfilling Prophecies.”
The Survival Rule: If the price opens above the Daily Pivot, the bias is bullish for the day. If below, look for sell opportunities.
Link: Pivot Points Standard