Speaking of pivots, I know two terms which explain pivot in different perspective. First is Pivot point and the second is Pivot Lines. Recently, when people discuss or mention ‘Pivot‘ it usually refer to Pivot Lines. Even, I have read somewhere a term of ‘Pivot Point‘ refers to Pivot Lines.

It is ok if the current common sense refer ‘Pivot’ or ‘Pivot Point’ to ‘Pivot Lines’. However, for learning purpose, I think knowing the difference of both term is better.

Pivot Point

Pivot point is a candle or bar which has one higher/lower candle/bar on both side. Pivot point usually indicate a reversal. Some traders usually buy at pivot low when price moves above 1 pip above the high of the middle candle. They make a sell at pivot high when price moves 1 pip below the low of the middle candle.

pivot point highpivot point low

Above pictures showing both the pivot high and pivot low pattern on a bar chart. Below is pictures showing how both pivot shown in a candlestick chart

candlestick pivot high candlestick pivot low

Now, that’s the different and uncommon concept of pivot point. For future reference, any word ‘Pivot’ or ‘Pivot Point’ on this blog will refer to Pivot Lines. Just not to confuse you :)

Tags: candlestick chart, forex pivot point, pivot, pivot point
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October 7, 2007

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