Price Pivot Zone (PPZ)
What is Price Pivot Zone?
Price Pivot Zone (PPZ) - The concept of the methodology of technical analysis of market movements Price Actionwhich is defined as a chart area where the support level becomes a resistance level and vice versa.
In simple terms, the PPZ is simply a horizontal line that served as support in the past, and now, say, as resistance, and may be both in the future.
How to determine the Price Pivot Zone line?
Usually PPZ is a line on the chart that corresponds to a specific price. This chart behavior is considered an anomaly, but happens quite often.
Price pivots live on any timeframe, from annual to M1. The older the timeframe and the more times the price rebounds from this level, the more important this
pivot, the greater the chance that price will bounce back from it. The Price Pivot Zone on the D1 chart can live for months, on the H1 - weeks.
You can determine the PPZ line by yourself using the price extremums or by using the appropriate Pivot Point indicators.
How to use PPZ in trading?
The Price Pivot Zone line helps the trader in determining the general trend and its supposed boundaries.
Very often PPZ levels fall on important Fibonacci levels, which only increases their importance. In order to track PPZ signals, you should find them on at least two timeframes.
Also near the boundaries of Price Pivot Zone levels there are often various candlestick patterns of reversal and continuation of the trend. Patterns such as "pincer" or "candlestick absorption" are not uncommon near PPZ lines.