Confluence of Pivot Points

Pivot points appear on different timeframes and chart intervals, such as Daily, 4-Hour, and Hourly. On the daily chart, one candle represents a full 24 hours of price action. The 4-hour chart is like a graph of four-hour candles, so each candle summarises four hours of open, high, low, and close information. The hourly chart uses one-hour candles. Across these timeframes. Candles form the market’s structure and momentum, and our bias for the next move is analysed from the candles' open, close, high and low happen. Also the candle patterns that form define the price action as a series of higher highs and higher lows or lower highs and lower lows.

This top-down view uses candle-by-candle information to identify the market’s rhythm and direction, with pivot points helping to map potential support and resistance zones. In short, candles across multiple intervals shape the market’s structure, momentum, and our trading bias as we move from broader to finer views.

Pivot points act as set reference levels that help traders gauge potential support and resistance across different timeframes. On monthly, weekly, and daily charts, these levels are recalculated as new price data comes in, so the pivots shift to reflect the latest market sentiment and range. When price moves, the current pivot, as well as nearby support (S1, S2, S3) and resistance (R1, R2, R3) levels, update to incorporate the most recent high, low, and close, creating a fresh roadmap for the coming period. The result is a web of confluence points where several indicators—monthly, weekly, and daily pivots aligned with zones of demand or supply—reinforce the likelihood of a reversal or breakout. Traders look for price reactions at these confluence zones, where a pivot level intersects with prior areas of demand (support) or supply (resistance), as well as with M points or other notable landmarks, to validate entry or exit decisions. The beauty of this approach lies in its multiscale perspective: when pivot reactions align across multiple timeframes, the signal becomes stronger, helping traders anticipate where price may stall, bounce, or accelerate as the market shifts its short- or longer-term bias. More importantly, where price has been and turned from bearish to bullish.


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