The pivot point is generally used by traders in banks and large institutions. As these groups of people that form a large volume of transactions, usually cause the price movement.
The pivot points are considered, higher levels of support and resistance where it is likely to see the revulsion in prices.
What it consists:
_____WEEKLY_____
Weekly - R3 = 1.1173
Weekly - R2 = 1.0944
Weekly - R1 = 1.0658
Weekly Pivot = 1.0429
Weekly - S1 = 1.0143
Weekly - S2 = 0.9914
Weekly - S3 = 0.9628
One of the strategies is to seek a period of congestion, rather than a period trend. This can be found at the extreme levels of R2, R3 or S2, S3.
_____MONTHLY____
Monthly - R3 = 1.2423
Monthly - R2 = 1.1587
Monthly - R1 = 1.1058
Monthly Pivot = 1.0222
Monthly - S1 = 0.9693
Monthly - S2 = 0.8857
Monthly - S3 = 0.8328
