Simply put, a pivot point<\/strong> and its support\/resistance levels are areas at which the direction of price movement can possibly change<\/strong>.<\/p>\n\n\n\n The reason why pivot points are so enticing?<\/p>\n\n\n\n It\u2019s because they are OBJECTIVE<\/strong>.<\/p>\n\n\n\n Unlike some of the other indicators that we\u2019ve taught you about already, there\u2019s no discretion involved.<\/p>\n\n\n\n In many ways, forex pivot points are very similar to\u00a0Fibonacci levels. Because so many people are looking at those levels, they almost become self-fulfilling.<\/p>\n\n\n\n The major difference between the two is that with Fibonacci, there is still some subjectivity involved in picking Swing Highs and Swing Lows.<\/p>\n\n\n\n With pivot points,\u00a0forex traders\u00a0typically use the same method for calculating them.<\/p>\n\n\n\n Many traders keep an eye on these levels and you should too.<\/p>\n\n\n\n Pivot points are especially useful to short-term traders who are looking to take advantage of small price movements.<\/p>\n\n\n\n Just like normal\u00a0support and resistance levels, forex traders can choose to trade the\u00a0bounce<\/em>\u00a0or the\u00a0break<\/em>\u00a0of these levels.<\/p>\n\n\n\n <\/strong>Range-bound traders use pivot points to identify reversal points.<\/strong> They see pivot points as areas where they can place their buy or sell orders.<\/p>\n\n\n\n
![\"Pivot](\"https:\/\/bpcdn.co\/images\/2016\/05\/grade8-pivot-points-support-resistance.png\" "\\"Pivot")
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