ES Futures : Pivot, Support & Resistance - February 2023

Pivot points are used by traders in equity and commodity exchanges to determine potential support and resistance levels. Pivot points are calculated based on the high, low, and closing prices of previous trading sessions. The pivot point is used to reflect a change in market sentiment and to determine overall trends across a time interval.

Support and resistance levels can be used by traders to determine entry and exit points, both for stop-losses and profit taking. There are multiple trading strategies that incorporate support and resistance levels, such as the use of the most recent lows or Fibonacci's.

How to use it?

The pivot point can be used by itself as a kind of test price to determine the direction of the short-term trend. Since the pivot point is the average of the high, low, and close of the previous session, it represents a weighted average of the previous session (the default is the session from the previous day). If, for instance, the market is able to rally above the pivot point, this may be an indication that the market is gaining some strength. If prices dropped below the pivot point, it would indicate that the market is in a poor position.

Support and resistance levels are the primary functions of pivot points in technical analysis. The pivot point itself is the most effective support and resistance level among the first pivot values. There is reduced reliability in the support and resistance levels in the first, second, and third levels. All of these pivot numbers are extremely well-known on the trading floors of the various exchanges, and a considerable number of traders make use of them.

ES March Contract

The pivot, support and resistance provided BELOW are of ES (MES) March contract.

Disclaimer

Trading futures involves substantial risk and investors could lose more than their initial investment. Trading futures and options involves the risk of loss and is not suitable for all investors. It is important to consider carefully whether futures or options are appropriate to one's financial situation and to understand the risks before trading.

ES Futures : Pivot, Support & Resistance - 2023

Daily published key ES pivot, support and resistance levels. Used by traders to determine entry and exit points, both for stop-losses and profit taking.

Wiki 360Andy Burton