Pivot points are calculated from previous-period prices, and are used by some traders as a technique to determine resistance and support levels that may signal trade entry/exit points.
The pivot point overlay is best used for historical analysis. To use pivot points as a method to predict future trends, draw pivot point trend lines instead.
To view a pivot point overlay, select Pivot Points from the Add Study menu, then click the + sign. The pivot point overlay shows five lines, the pivot and two resistance and two support levels. These lines are calculated from the previous time frame (for example, from the previous 5 seconds if the 5-second time frame is being viewed; from the previous day if the 1-day time frame is being viewed).
To remove the pivot point overlay, select Remove Pivot Points from the menu that appears when you click over the graph.