How to read a pivot level, using $ZEC as today's example
If you're newer to this, save the post. If you're not, skip to the levels.
WHAT A PIVOT ACTUALLY IS
It's the average of yesterday's high, low and close. That's it — no magic. It works because enough people watch it that it becomes self-fulfilling, not because the number is special.
TODAY'S NUMBERS ON $ZEC
Pivot: 507.1
R1 529.1 · R2 544.1
S1 492.1 · S2 470.1
Price is 504.6, which puts it 0.49% from P.
HOW TO USE IT
Above the pivot, you look for longs into R1. Below it, you look for shorts into S1. The pivot itself is the least interesting number — it's the line you measure from, not a level you trade.
If you're newer to this, save the post. If you're not, skip to the levels.
WHAT A PIVOT ACTUALLY IS
It's the average of yesterday's high, low and close. That's it — no magic. It works because enough people watch it that it becomes self-fulfilling, not because the number is special.
TODAY'S NUMBERS ON $ZEC
Pivot: 507.1
R1 529.1 · R2 544.1
S1 492.1 · S2 470.1
Price is 504.6, which puts it 0.49% from P.
HOW TO USE IT
Above the pivot, you look for longs into R1. Below it, you look for shorts into S1. The pivot itself is the least interesting number — it's the line you measure from, not a level you trade.