Importance of Pivot Point

I was going through tutorials on Support / Resistance of Technical Analysis.
Calculation has been shown how to calculate Pivot points.

However I don't understand the importance of the Pivot point.

What does a pivot price mean ? Does it mean maximum trade occurs at this price level ?

Can anyone please clarify importance of pivot points ? how it helps to take decision

Regards
MP

I am also interested in Pivot Point based day trading. Can anybody help on this subject or related thread

Thanks

AFAIK, pivot is a place of turn (in market, prices turns at a pivot). A pivot low suggest a place, where once no sellers where found below that point. A pivot high is a place above which no buyers were found. It doesn't mean maximum trade occurs at that price level. VWAP will say that.

Regarding taking decision, when price goes above a pivot high (which means last time there were no buyers found above that price level), implies either value of the script is increasing, or new buyers seen, and suggest an upmove. Vice verse for break of pivot low on bottom side leading to downmove. If you are long, keep a pivot low as reversal point/SL. If you are short, keep pivot high as the reversal point/SL.

In the recent days, many pivot breaks are failures results in price turning back again to previous trend/range. So one need to start trading break out failures also, if trading based on pivot break.