Pivot Points

I've been using pivot points for the past 1-2 months and they've really helped me gauge the strength of a stock, SPY's & dollar index. IB charts has these pivot point built in and I checked the calculations and they're the standard pivot point formulas. I've noticed that the levels of resistance and support are followed by the stocks probably because a lot of traders are watching them and therefore it becomes a self-fulfilling prophecy at least that's my theory. Also they help ground you. If you can I would read "The Logical Trader" or at least the first few chapters to see how you interpret the probabilities of a stock continuing an uptrend or breaking down with pivots and how that these secondary indicators can boost your confidence entering/exiting a trade or adding/lightening up on a position. I really struggled to find some grounding before I started incorporating pivots into my day trading.

See the rainbow colored lines those are the pivot levels.