R3 and S3 can be regarded as clear indicators of the maximum range of extreme volatility, though it is possible to pass them through.
Pivot lines can be applied well on the sideways markets, as prices are most will probably be located between the R1 and S1 line.
Within a strong trend the price is expected to be lower than the pivot point line and continue the movement.
In case of the breaking news release that may affect the market, the price is likely to go straight through R1 or S1 and even reach R2 & R3 or S2 & S3.
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.