Pivot High / Pivot Low
Volume Price Analysis glossary · Volume Price Analysis
Definition
A local price extreme formed by three candles where the middle candle has the highest high (pivot high) or lowest low (pivot low) of the trio.
Pivot High / Pivot Low in plain English
A pivot is just a little peak or valley on the price chart — the moment where the market ran one direction, ran out of steam, and turned around. To spot one you look at three price bars (candles) in a row: if the middle bar pokes HIGHER than the two beside it, that's a pivot high (a local top); if it dips LOWER than its neighbours, that's a pivot low (a local bottom). Think of walking a hilly path and marking every point where you stop going up and start going down — those are your pivot highs. Traders love them because those tiny tops and bottoms often become the lines other people watch, buy at, and sell at.
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