Reference for pivot point?

<p id="isPasted">A pivot point reference is a calculated price level used in technical analysis to identify potential support and resistance levels for a given trading period, typically based on the previous day's high, low, and close prices. The standard formula is Pivot Point (PP) = (Previous High + Previous Low + Previous Close) / 3. Once the pivot point is established, traders use derived support (S1, S2, etc.) and resistance (R1, R2, etc.) levels to guide entry and exit strategies.</p><p>&nbsp;</p><p>Calculation</p><p>The most common type of pivot point calculation, the standard or classic pivot point, uses the following formula:</p><p>Pivot Point (PP): (High + Low + Close) / 3&nbsp;</p><p>Support Levels (S):</p><p>S1 = (2 x PP) – Previous High&nbsp;</p><p>S2 = PP – (High – Low)&nbsp;</p><p>Resistance Levels (R):</p><p>R1 = (2 x PP) – Previous Low&nbsp;</p><p>R2 = PP + (High – Low)&nbsp;</p><p>How Traders Use Pivot Points</p><p>Trend Identification:</p><p>If the price opens above the pivot point and stays there, it suggests an uptrend. A price opening below the pivot point and remaining there indicates a potential downtrend.&nbsp;</p><p>Support and Resistance:</p><p>Pivot points act as natural boundaries. Traders might buy near a support level, expecting a bounce, or sell (short) near a resistance level.&nbsp;</p><p>Trade Management:</p><p>Support and resistance levels serve as targets for taking profits and places to set stop-loss orders.&nbsp;</p><p>Variations</p><p>Other pivot point calculation methods exist, such as:</p><p>Fibonacci Pivot Points: These incorporate Fibonacci retracement levels to determine support and resistance levels.&nbsp;</p><p>Camarilla Pivot Points: Another variation that uses different formulas to derive key levels.&nbsp;</p><p>Woodie's Pivot Points: These give more emphasis to the opening price in their calculations.&nbsp;</p>