Excerpt from website by permission:
Pivot Points are forecasted market trend changes and are based on a proprietary algorithm we developed a number of years ago. They can be quite accurate in pinpointing important market turning points. The advantage of the PP's is that they can be forecast out in the future weeks in advance, giving traders a heads up of when to expect a trend change. The disadvantages were 1) not all PP's mark significant turning points and 2) they can occasionally be early or late by a day or two. To overcome these shortcomings, we use a modified relative strength indicator that provides more precise entries and exits. In fact, in most cases, the adjusted PP dates have hit the exact closing swing highs and lows.