Pivots vs Support and Resistance

Discussion in 'Technical Analysis' started by sukhen, May 18, 2004.

  1. sukhen


    How can PIVOTS be distinguished from SUPPORT and RESISTANCE?
  2. dbphoenix


    If they supply support or resistance, then they're support/resistance. If they don't, they aren't.
  3. Lucrum


    Here's my take on it,

    Pivots are a projected almost "theoretical" S/R level. Whereas horizontal or even TL S/R levels are based on trades / price action that has actually occurred.
  4. dbphoenix


    Actually, except for examples provided via hindsight, all S/R is projected and theoretical. The point of the exercise is to determine those levels at which one might expect to see activity. It is more likely that one will find activity at levels created by prices paid rather than by an arbitrary line that springs from the mind of the chartist.
  5. Lucrum


    No argument from me.