Pivot Points are always very useful for trading, this is a simple way to have some idea of where the market is heading during the day.
The indicator also provides the first three supports and resistances.
The formulae I used are:
Resistance 3 = High + 2*(Pivot – Low)
Resistance 2 = Pivot + (R1 – S1)
Resistance 1 = 2 * Pivot – Low
Pivot Point = ( High + Close + Low )/3
Support 1 = 2 * Pivot – High
Support 2 = Pivot – (R1 – S1)
Support 3 = Low – 2*(High – Pivot)
It uses the data from the bar of the previous day.
The orange line is the pivot point of the day, the red lines are supports and the green lines are resistances.