Pivot trading is a price level–based approach that uses pivot points—calculated from the prior session’s high, low, and close—to map potential...

Pivot trading is a price level–based approach that uses pivot points—calculated from the prior session’s high, low, and close—to map potential support (S1, S2, S3) and resistance (R1, R2, R3) for the next session. Day traders and swing traders rely on these levels to plan entries, exits, and risk because they highlight where order flow tends to cluster and momentum often shifts. Common variants include Floor (standard), Fibonacci, and Camarilla pivots; each offers slightly different spacing between levels, but the core logic is the same: trade reactions around predefined zones. Traders often pair pivots with volume, RSI, VWAP, or candlestick patterns to validate signals and avoid false breaks. Whether you trade forex, stocks, indices, or crypto, pivot trading helps you quickly frame the market, set realistic targets, and define stop-losses grounded in objective structure. As with any method, backtesting and strict risk management are essential—use fixed risk per trade, honor your stops, and adapt levels to your timeframe.

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