Resistance, Support aur pivot point.

In pivot point trading, a support value is a price. It is a price that an investment will land on as its price is dropping.

Support prices are the time at which you would want to buy shares in a particular business.

Resistance prices are the opposite of support prices. If a stock is going up and it hits a resistance price, it is not likely to go any higher.

Support and resistance tell you when to buy and when to sell.

Pivot points are used primarily as support/resistance numbers. The market should find resistance at the pivot numbers on the upside and support at the pivot numbers on the downside. The pivot point itself is a stronger support/resistance number than the first and second support and resistance levels.

Pivot Points or Pivot Levels are nothing but some support and resistance levels that you can calculate and plot on your charts very easily.

Support occurs when buyers step in with enough demand (buy) volume to stop the fall of prices, possibly driving prices upward for a time.

Resistance occurs when sellers step in with enough supply (sell) volume to stop the rise of prices, possibly driving prices downward for a time

A support range occurs where there is a concentration of demand. When price reaches the support range, buyers step in with their orders to create excess demand. Prices then move higher.

A resistance range occurs where there is a concentration of supply. When price reaches the resistance range, sellers step in with their orders to create excess supply. Prices then move lower.

A pivot point is calculated as an average of significant prices, namely the High, Low, and Close from the performance of a market in the previous trading period.

In a market, a pivot point, along with its associated support and resistance levels, are often turning points for the direction of price movement. If the market is trending up, the pivot point and the resistance levels may represent a ceiling level in price above which the uptrend is no longer sustainable.

The Pivot Points by definition are a mathematical formula which provides support and resistance levels for all markets,

The numbers of support and resistance that are calculated indicate the potential ranges for the next time frame based on the past weight of the markets strength or weakness derived from the calculations of the high, low and distance from the close of those points.

Pivot point analysis is also used for identifying breakout points from the support and resistance numbers. The previous sessions trading range could be based and calculated for an hour, a day, a week or a month.