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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Rick Faurot who wrote (528)	6/11/1999 11:01:00 PM
From: TraderAlan	Read Replies (1) \| Respond to of 18137

Rick, There are two ways to look at pivots. You can view them as short term support/resistance upon which price swings back and forth. Or the reference is to the trendlines that develop as center points rather than ceilings or floors. In fact, I suspect these middle ranges are more common than regular lines. Bollinger Bands are real good in picking up center points since they look at the tension on the spring, so to speak. As for support/resistance pivots, say for example you followed INTC the last two days. Once it broke above 55, that point became a natural long side pivot after the gap open failure this morning. Then 56-56 1/8 was the natural short or sell swing since that's where the top of the gap (the open) was and where price broke from after trying to rally early on. Later in the day, other lines of force developed and these defined further swing levels. I'm sure from the L2 perspective, the pivot is also where the attack and retreat levels develop. Alan