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       R2, and there, too, it is worth taking profit or buying above it.
   o	 The same follows for the opposite situation, trending down: the lines

       of support at S1 and S2 may delay a drop in price, therefore profits
       should be realized at the S1 or S2 support lines, or shorts should be
       entered beneath those two lines when they are broken.

Impact of the Pivot Points on Shares of the Steel Trading Company, X

   X is trending up strongly when trading opens, and stops very close

to the pivot point (PP) line. As you will understand from the calculation

below, the pivot point line is considered the intraday axis of movement of

the previous day’s trading, which in that respect makes it also considered

a “fair price,” like the VWAP.

   This means that when the stock opens below the pivot point, buyers
will be found who are ready to buy the stock. Of course, they will buy only
up to the stage when the price reaches the pivot point, which currently

serves as resistance.
   The price then drops and is supported at S1 [1]. Buyers return to the

scene, and the price trends up but encounters resistance at the pivot [2].
It succeeds in breaking through the pivot and returns down, supported by
the pivot which now serves as support [3]. The price continues up to the
next line of resistance at R1, stays there a while as expected [4], and then
continues trending up to the next resistance point R2 [5].
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