Pivot points are calculated from previous-period prices, and are used by some traders as a technique to determine resistance and support levels that may signal trade entry/exit points.
The pivot point overlay is best used for historical analysis. To use pivot points as a method to predict future trends, draw pivot point trend lines instead (see Trend Lines).
How to Use
To view a pivot point overlay, select Pivot Points from the Add Study menu, then click the + sign. The pivot point overlay shows five lines, the pivot and two resistance and two support levels. These lines are calculated from the previous time frame (for example, from the previous 5 seconds if the 5-second time frame is being viewed; from the previous day if the 1-day time frame is being viewed).
To remove the pivot point overlay, select Remove Pivot Points from the menu that appears when you click over the graph.
For more information on how these lines are calculated, see Pivot Point Trend Lines.