Pivot Point Calculator
Calculate technical trading pivot points, support (S1, S2, S3), and resistance (R1, R2, R3) levels using Standard, Fibonacci, Woodie, and Camarilla methods.
What is a Pivot Point in Trading?
A pivot point is a technical indicator used by day traders, stock investors, and forex market participants to determine general price trends and forecast key support and resistance levels. The pivot point itself represents the average of high, low, and closing prices from a prior trading period.
Standard (Floor) Pivot Point Formulas
The primary pivot point ($P$) and surrounding support ($S_1, S_2, S_3$) and resistance ($R_1, R_2, R_3$) levels are calculated as follows:
$$P = \frac{H + L + C}{3}$$
$$R_1 = 2P - L, \quad S_1 = 2P - H$$
$$R_2 = P + (H - L), \quad S_2 = P - (H - L)$$
$$R_3 = H + 2(P - L), \quad S_3 = L - 2(H - P)$$
Other Popular Calculation Methods
- Fibonacci Pivot Points: Applies golden ratio Fibonacci retracement percentages (38.2%, 61.8%, 100%) to the previous period trading range.
- Woodie Pivot Points: Weighs the opening price of the current period more heavily when calculating the main pivot level.
- Camarilla Pivot Points: Uses closing price and price range to project tight support and resistance levels for intra-day range traders.
Frequently Asked Questions
How do traders use pivot points?
Traders use pivot points to identify potential reversal areas or trend continuation points. If the price trades above the pivot point, market sentiment is bullish; if below, sentiment is bearish.
Which timeframe is best for pivot point calculations?
Daily pivot points calculated from the previous day's high, low, and close are most popular for day trading. Weekly and monthly pivot points are commonly used by swing traders and position traders.
What is the difference between support and resistance?
Support levels ($S_1, S_2, S_3$) are price floors where buying interest is expected to prevent prices from falling further. Resistance levels ($R_1, R_2, R_3$) act as ceilings where selling pressure may prevent prices from rising higher.
Can pivot points be used for forex and cryptocurrencies?
Yes. Pivot points are widely applicable across stocks, forex pairs, futures, commodities, and cryptocurrency markets.