Staying With The Market’s Trend

Financial arrows up or down -staying with the trend
One of the most important skills in trading and investing is being able to identify the key levels of support and resistance for a given market. Support and resistance levels are created by supply and demand for a market at particular price levels. When prices fall to a well-established support level, increased demand for the issue at lower prices often triggers new buying. When prices rise to high levels, traders are often willing to sell their position in a market, and that increased supply can cause a market to reverse and turn lower.
There are many ways to determine support or resistance, ranging from chart analysis to the levels determined by moving averages. One of the lesser-used methods is pivot levels. I often use monthly and quarterly pivot analyses to identify support and resistance levels that are not easily identified by other methods of analysis.
In basic pivot analysis, a stock, market average, or ETF is positive if it is trading above its pivot level. In a positive-trending market, the next level to watch is the first resistance level above the pivot or R1. Conversely, if a market is below its pivot then the focus should be on the first support level below the pivot or S1.
In , if one adds pivot levels to either weekly or monthly charts, it produces a chart with yearly pivot levels. If you are plotting daily data then monthly pivot levels are displayed. On the intra-day charts, the weekly pivot levels are plotted.
Spyder Trust 2020
Tom Aspray -