Pivot Point Reversal

Pivot Point

The pivot point focuses on the closing price relative to the bar with the highest High (or lowest Low).

After an up-trend:

  • The close is below the Low of the day with the highest High.

After a down-trend:

  • The close is above the High of the day with the lowest Low.

Complex Pivot Point

Complex pivot points sometimes occur, where it may take several days to form a pivot.

Complex Pivot Pattern


The signals are most reliable if they occur after a strong trend. If the trend is weak, so is the signal.