Capital Synergy - Research

Report Items Explained

Pivot Points

The pivot point is calculated as the average of the prior period's High, Low and Closing prices.
It is a significant leading technical indicator that helps to define the prevailing market sentiment. In addition to the primary pivot point, several levels of support and resistance are calculated. Half-way points between the pivot, support and resistance lines are also show.

Balance Points

The balance point is the average pivot point of the prior three periods.
 The relationship between the balance point and pivot point can be an indicator of the short term trend and can also act as price support or resistance.

• When the pivot point (blue indicator line) is above the balance point (orange line) the trend is expected to be positive.

• If the pivot point shows below the balance point line it is likely that the market will trend to the down side.

• Should the pivot point and balance point be in close proximity to one another a flat trending day can be anticipated.

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