Pivot Point (PP) is a technical analysis indicator that helps to visually show so-called pivot levels in a chart. In its essence, it is more correct if we call it a script. It shows potential levels for trading on the charts.

Generally, technical analysis of charts of trading assets exists as an area of knowledge, precisely because the whole world, including financial ones, has its regularities. Everything is cyclical. Everything repeats itself. These circumstances allow technical analysis and its indicators to live. That is, if we know that when the price reaches a certain value, it reversed and went back, there is a possibility that when the price returns to this value it will show similar behavior. No one can control this probability, so we can never know for sure that something will happen again or not, but we should always keep it in mind. We can only make some assumptions about this probability in advance, namely:

1. The higher the time frame the higher this probability;
2. The higher the volatility + the closer the price is to the level drawn by the script, the higher the probability of market reversal;
3. The lower volatility + the closer price is to the level drawn by the script, the higher the probability of level breakdown, i.e. trend continuation.

Knowing these simple rules, we can already build a profitable trading system based on the PP pivot Forex indicator.