Pivot Point

A technical analysis indicator calculated from the previous session's high, low, and closing prices, used to identify potential support and resistance levels for the current session. Floor traders in the pre-electronic era popularized pivot points because they could be computed by hand before the market opened. The standard pivot plus its support (S1, S2, S3) and resistance (R1, R2, R3) levels remain popular among day traders and are automatically plotted on most charting platforms.