Using Pivot Points

Another pivot point system was developed by Tom DeMark, a famous technical analyst and president of Market Studies, Inc. This system uses the following rules:

As you can see, there are many different pivot-point systems available. Some popular ones include as many as nine different price levels; meanwhile, others predict only one pivot point, and no additional levels of support.
When calculating pivot points, the pivot point itself is the primary support/resistance. This means that the largest price movement is expected to occur at this price. The other support and resistance levels are less influential, but may still generate significant price movements.