Pivots

Pivots are local peaks or bottoms of a stock price in a stock chart. It is important to identify pivots when you are performing technical analysis.

It is between pivots that you draw trendlines. A trendline of a rising trend are drawn from the bottom pivots in the share price. A trendline of a falling trend are drawn from the top pivots in the share price. When you draw a trend channel, you draw two trend lines, one for the bottom pivots and one of the top pivots.