Pivot Point
A technical indicator derived by calculating the numerical average of a particular stock's high, low and closing prices.
Investopedia Commentary
The pivot point is used as a predictive indicator. If the following day's market price falls below the pivot point, it may be used as a new resistance level. Conversely, if the market price rises above the pivot point, it may act as the new support level.
Related Links
Using Pivot Points for Predictions
Gauging The Strength Of A Market Move
See also: Congestion, Correction, Moving Averages, Resistance, Support, Technical Analysis, Trend, Trend Analysis