【Beginner】Technical Course | Pivot

【In Practice】 All indicators, rules, and theories must be

“believed in and waited for that situation”as the absolute rule.

Technical Course | Pivot

Pivot refers toa line that serves as a guide for support and resistance,
calculated from the previous day’s high, low, and close.It is.
In day trading and scalping, it acts as the “reference point” for that day’s price movement,
widely used by traders overseas, but in Japan it is still not well adopted and not widely used as an indicator
..

Pivot automatically updates and is aleading indicatorthat does not move during the day,
and is more user-friendly and accurate than the leading span of the Ichimoku Cloud.

Basic Structure of Pivot Lines

• PP (Pivot Point): The central reference line
• S1・S2・S3: Lower support lines
• R1・R2・R3: Upper resistance lines

Based on these seven lines,the day’s buying and selling battleground linesbecome clear.
It works especially well during periods with many participants, such as the London and New York markets.

From experience, there is a 90% or higher probability that price will reach either S1 or R1 within the day.
In other words, using S1 and R1 as daily target values is very effective.

How to Use in Practice

• If price is above Pivot (PP) → Buy bias indicates strength
• If price is below Pivot (PP) → Sell bias indicates strength
• At S1・R1 Rebound, or Break is a trading point
• S2・R2 serve as “milestones” for taking profits or counter-trading

For example, if price breaks above the Pivot line and, on the subsequent pullback, PP acts as support,
it becomes an excellent point to buy on the dip.

Benefits of Using Pivot

• Clarifies the day’s reference point for price movement
• Support and resistance update automatically, no extra work
• Functions as a leading indicator, increasing forecast accuracy
• Many traders watch the same lines, making them more noticeable

Pivot is the “daily map of strategy”.
Always keep it in mind and calmly judge support/resistance, breakouts, and rebounds.