As you can see in the formula of the pivot point calculator, the highest rate, the lowest rate and the closing rate of the previous day give you a total of 7 points to look at: 3 resistance levels, 3 support levels and the pivot point to calculate.

If the market is opened above the pivot point then a signal to short to make longtrades. If the market opens below the pivot point then that is a signal to short to make shorttrades.

The three most important pivot points are R1, S1 and the actual pivot point.
The general idea behind trading pivot points is the search for turning or breaking or not R1 or S1. By the time the market reaches R2, R3 or S2, S3 will already overbought or oversold. These levels should be used as a level to open the trade to close instead.