Floor Pivot Points

The classic formula day traders use to set the day’s key levels from yesterday’s high, low and close, worked through with real SPY numbers.

A formula from the trading floor

Floor pivot points date back to the days when traders stood in trading pits. Before the open, they calculated a set of levels from the previous day’s high, low and close. Those levels are still widely used by day traders, which is part of why they can matter: many people watch the same prices.

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