What is a Pivot Point? Technical Analysis with Pivot point?

Pivot point is the price point which is assumed to draw the stock prices to that point eventually. A pivot point is calculated as an average of (high, low, close) from the performance of a market in the prior trading period i.e a day or hour or month. If the market in the following period trades above the pivot point it is usually evaluated as a bullish sentiment, whereas trading below the pivot point is seen as bearish. For e.g stock XYZ had a previous days (Day High = 320, Day Low=290, Closing=300) then its pivot point will be (320+290+300)/3 = 303.33. If stock is moving above 303 today then its bullish and if below 303 then its bearish. You can check our calculator page