Im trying to understand Pivot Points more.
First when is it considered that a level (PP, R1, S1 etc) is breached? In candlesticks, does the price have to close above the line, or is it enough that the shadow or the high or low of the day cross the line. Then, how many candles does it need to form above or below the line to confirm the trend?
Second Do we consider the shadows hitting the line and bouncing as signs of strength of the support and resistance, or does it have to be the candles open and close that bounces?
If the candles are way outside the lines (as it was in USD/JPY today) where they were in a level complete of their own, what does this mean? Does this mean no trades on that day?
I tried searching the forum but didn’t see a similar thread.