The longer the trend (and the higher the period selected) before and after the Pivot Point, the more significant the Pivot Point. Significance of the pivot point shows how reliable the pivot point is in terms of confidence in the support or the resistance. Pivot Points can be used to help determine where to draw trend lines in order to visualize price patterns.

Let us now look at the actual calculation and use of pivot points in the Bar Count Reversal indicator. Here are some basic rules that you need to remember.

Pivot Point Highs are determined by the number of bars with lower highs on either side of a Pivot Point High.

Pivot Point Lows are determined by the number of bars with higher lows on either side of a Pivot Point Low.