Use of PIVOT POINT

General
1

What is the use of Pivot Point ? How to use PP in Intraday trading ?

2

Please refer to this link. It has information on pivot points and how to use them for trading.

It is calculated based day's values of a stock.

Pivot point = {(high + low + close) / 3}

This point is used as a reference point, in predicting what range the stock will trade on the next day. There are many ways to trade based on pivot point & support and resistance levels obtained from it. 

But as with most strategies, it works for specific stocks & for specific trends (trending/sideways) in market. Once you understand it, you can figure out how to trade it.

Happy trading!!!

1 Like
3

Thanks for the Reply . Do you had a list of Specific Stocks ? Share if possible .

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I do use pivot point as a reference while trading, but I cannot share the stocks. Pivot point is “one of the factors” that I consider before entering into a trade. So trading only based on pivot point won’t give good results. The stocks I trade are also part of strategy, and I keep it confidential in order to maintain the edge of my strategy. If you share a good strategy with everyone, and more people will start using it, then you will lose the alpha. But I can tell you that I went through a lot of Intraday data for many stocks, just to find the stocks which give good results for my strategy which uses pivot points .
Hope this helps!

5

Thanks a lot