Pivot Levels

Level Price Distance from PP

What are Pivot Points?

Pivot points are technical indicators calculated using the previous period's high, low, and close prices. They help traders identify potential support and resistance levels where price may reverse or consolidate.

Pivot Point Methods

Standard Pivot

The most common method. PP = (H + L + C) / 3. Simple average of high, low, close.

Fibonacci Pivot

Uses Fibonacci ratios (38.2%, 61.8%, 100%) to calculate support and resistance from the pivot.

Camarilla Pivot

Created by Nick Scott. Uses closer levels ideal for intraday range trading and breakouts.

Woodie Pivot

Weights the close price more heavily. PP = (H + L + 2×C) / 4. Good for trend traders.

DeMark Pivot

Uses the relationship between open and close to calculate levels. Created by Tom DeMark.

Standard Pivot Formulas

PP = (High + Low + Close) / 3 R1 = (2 × PP) - Low R2 = PP + (High - Low) R3 = High + 2 × (PP - Low) S1 = (2 × PP) - High S2 = PP - (High - Low) S3 = Low - 2 × (High - PP)

How to Trade Pivot Points

Bounce Strategy: Enter long at support levels (S1, S2, S3) with stop below. Enter short at resistance levels (R1, R2, R3) with stop above.

Breakout Strategy: If price breaks above R1, target R2. If price breaks below S1, target S2. Use PP as a bias indicator - above PP is bullish, below is bearish.

Range Trading: Trade between S1 and R1 when price consolidates around the pivot point.

Frequently Asked Questions

What are pivot points in trading?
Pivot points are technical indicators used to determine potential support and resistance levels. They are calculated using the previous period's high, low, and close prices. Traders use pivot points to identify key price levels for entries, exits, and stop-loss placement.
Which pivot point method is best?
The best method depends on your trading style. Standard pivots are most widely used. Fibonacci pivots add Fib ratios for confluence. Camarilla pivots are popular for intraday range trading. Woodie pivots weight the close more heavily for trend trading.
What timeframe should I use for pivot points?
Daily pivot points are most common and widely watched. Weekly pivots work for swing traders, while monthly pivots identify major levels. Intraday traders may use hourly or 4-hour pivots for shorter-term trading.
How accurate are pivot points?
Pivot points are self-fulfilling - they work because many traders watch them. Studies show price reacts to pivot levels about 70-80% of the time. They're most effective when combined with other technical tools.
Can pivot points be used for all markets?
Yes, pivot points work on forex, stocks, crypto, futures, and commodities. They're particularly effective in liquid markets where many participants watch these levels.

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