These are called pivot points, turning
points, or reversal points.
In other words pivot points are locations
on a price chart for a rotation or a change in the direction
of price movement.
They are important for defining tram
lines, trade lines, and channels.
To define a pivot point at high we
look at the close price for each bar or candle.
If a bar or candle has close price that is higher than
it's preceding and following bar or candle, it is a
pivot.
The same definition is valid for low
pivot points.
If a bar or candle has a close price lower than the
preceding and following bar or candle, than that is
the pivot.
|
