In addition to giving buy and sell signals, pivot points give traders a good time to get out of their trade. To illustrate, during a rally some traders will set their sell orders right below the next resistance line. Thus, pivot point resistance and support lines can generate ready made profit targets.
A 5-minute chart of an example symbol is shown below:
In the 5-minute chart, the market opened the day downward, but held steady at Support 2 (S2).
From there, the market rallied past S1 and the Pivot Point. Eventually, the market found resistance at Resistance 1 (R1).
Next, the Pivot Point offered support initially, but then the market meandered slightly above and below the pivot point, until finally, the market accelerated past R1 and then past R2.
The rally continued until one candlestick reached R3, where the bulls were promptly rejected.
Selecting the Pivot Lines - Floor Indicator on the "Indicators and Symbols" list displays the "Add Indicator" dialog, illustrated below, where you an choose among the different options available to have the Indicator display on the Chart as you'd like it to. Click "OK" to add the Indicator.
The Indicator is superimposed on the Chart, as shown in the following illustration.
