The pivot method is a simple but widely used way to generate support and resistance levels for the coming day’s trade. But you have to do the math, and we've got help with the spreadsheet you can download below.
Once you've installed the spreadsheet, just enter the previous day’s high, low and close (available from the Daily Quotes page of FarmFutures.com) to find levels for any futures market.
While not a foolproof trading strategy by any means, the method shows prices markets may gravitate towards during the day’s trade.
We calculate this kind of information everyday, and you can find other helpful online tools as well, but this simple spreadsheet can allow you do run some off-line scenarios for your operation.
Keep in mind that this, or any other method of selling, doesn't ensure a better price. While there's math behind the system, there's no real science to this system. And if pivot points work at all, it may only be because other traders are using the same calculations, so pivot points tend to reinforce themselves. They can be a kind of self-fulfilling prophecy. Regardless, that's at least one reason for being aware of pivot points.