Pivot points are a popular tool used by traders to identify potential levels of support and resistance in the markets. They are calculated using a formula that takes the previous day's high, low, and closing prices into account. By incorporating pivot points into their trading strategy, traders can gain insight into the market's behavior and make more informed trading decisions.One of the primary uses of pivot points is to identify potential levels of support and resistance. The levels are calculated using the pivot point as a reference point, with additional levels of support and resistance being calculated based on the price action from the previous day. Traders can use these levels to identify potential entry and exit points for their trades.Another way traders can use pivot points is to determine the overall trend of the market. If the price is trading above the pivot point and the levels of support and resistance identified by the pivot points are trending higher, it can indicate that the market is in an uptrend. Conversely, if the price is trading below the pivot point and the levels of support and resistance are trending lower, it can indicate that the market is in a downtrend.In this article, we will explore the different types of pivot points and how to calculate them, as well as how to use them in conjunction with other technical analysis tools to develop a comprehensive trading strategy.