Pivot Point Reversal
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 points sometimes occur, where it may take several days to form a pivot.
The signals are most reliable if they occur after a strong trend. If the trend is weak, so is the signal.