Gold Pivot Support and Resistance Levels

Gold Pivot Support and Resistance Indicator Levels is a set of indicators used to determine potential turning points or potential gold breakout points, also known as " gold pivots" or gold pivot point. These Gold Pivot Support and Resistance Levels are calculated to determine points which the trend could change from a "bullish" to "bearish market trend or from a "bearish" to "bullish trend." traders use these Gold Pivot Support and Resistance Levels as zones of support and resistance.

These Gold Pivot Support and Resistance Levels are calculated as the average of the high, low & close from the previous session:

Gold Pivot Point = (High + Low + Close) / 3

Day traders use the calculated gold pivot support and resistance levels to determine levels of entry, stop loss level and profit taking level, by trying to determine where the majority of traders may be doing the same thing.

A gold pivot point is a price level of significant technical analysis that is used by traders as a predictive or leading indicator of xauusd price movement. Gold Pivot Support and Resistance Indicator is calculated as an average of significant prices (high, low and close xauusd price) from the xauusd market prior trading period. If the xauusd prices in the following trading period trade above the central gold pivot point it is interpreted as a bullish trend, whereas if xauusd price trade below the central gold pivot point is interpreted as bearish.

The central gold pivot point is used to calculate additional levels of support and resistance, below and above central gold pivot point - by either subtracting or adding price differentials calculated from previous day trading ranges.

A gold pivot-point & the gold pivot support and resistance levels are often turning points for the direction of xauusd price movement.

• In an upwards trend, the gold pivot point indicator & the gold pivot resistance levels - represent a ceiling level for the xauusd price - if xauusd price goes above this level the up-ward trend is no longer sustainable & a trend reversal is likely to happen.

• In a downwards trend, the gold pivot-point & the gold pivot support levels may represent a low for price level or a resistance to further price decline.

The central gold pivot point can then be used to calculate the support & resistance zones as follows:

Gold Pivot Support and Resistance Indicator Levels consist of a central gold pivot point level surrounded by three support levels below it and three resistance areas above it. Gold Pivot Support and Resistance Levels provide a quick method for traders to get a general idea of how the xauusd market will be moving during the course of the day by using a few simple calculations based on the previous price close - Previous Day Close Breakout Gold Strategy and Market Open Trading Strategies.

Gold Pivot Support and Resistance Indicator Levels is considered as a leading technical indicator rather than a lagging indicator. All that is required to calculate the gold pivot support and resistance levels for the current day is the previous day high, low, and close xauusd prices. The 24-hour cycle gold pivot support and resistance levels in this indicator are calculated according to the following formulas:

The central gold pivot point can then be used to calculate the support & resistance zones as follows:

Resistance 3

Resistance 2

Resistance 1

Gold Pivot Point

Support 1

Support 2

Support 3

Pivot Points Breakout Indicator - Gold Pivot Support and Resistance Levels