Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: mistermj who wrote (28913)	6/21/2001 2:18:06 PM
From: Ron Dior	Respond to of 37746

You can use pivot points much in the same way that you would use a moving average. As you know nothing on the stock market moves in a straight line. The Pivot Point is defined as the average of the high, low and settlement price, and is plotted as the green line across the chart. The blue line above the pivot point is the resistance level and is defined as twice the pivot point minus the low price. The red line below the pivot point is the support level and is defined as twice the pivot point minus the high price. Pivot points are used primarily as support and resistance levels with the pivot point the best support resistance level. There is formula that is used to project these points more accurately. I don’t have access to it now but I can post it later if you would like. Looking at the chart I have linked, the next major downward pivot point should be at or about the 2400 level. Hope this helps, Ron Dior