Pivot Point Podcast and the 5% Rule

The PhilStockWorld Investing Podcast · Dec 17, 2025 · 13m · transcript

How Pivot Points Work — And Why They Fit Hand-in-Glove With Our 5% Rule™

Let’s start by clearing the smoke:

Pivot Points are not magic.

They are not predictive.

They are not “telling the future.”

What they are — and why they work — is astonishingly simple:

Pivot Points map where BUYERS and SELLERS previously agreed on value.

And humans (and algos) are astonishingly predictable about returning to prior consensus levels.

That’s the whole thing.

Let’s unpack it properly.

1. What a Pivot Point Actually Is

Wall Street defines the Pivot as:

P = (High + Low + Close) / 3

It is literally the average…