Pivot Point calculator
Calculate pivot points and support/resistance levels
📊 Understanding Pivot Points
Pivot points are technical analysis indicators used to determine potential support and resistance levels. They are calculated using the previous day's high, low, and close prices and are commonly used by day traders and swing traders.
The pivot point itself serves as the primary support/resistance level, with additional levels calculated above (resistance) and below (support) the pivot point.
🔍 How Pivot Points Are Calculated
The standard pivot point formula is:
Pivot Point = (High + Low + Close) / 3
Support and resistance levels are then calculated as:
- Resistance 1: (2 × Pivot) - Low
- Resistance 2: Pivot + (High - Low)
- Resistance 3: High + 2(Pivot - Low)
- Support 1: (2 × Pivot) - High
- Support 2: Pivot - (High - Low)
- Support 3: Low - 2(High - Pivot)
❓ Frequently Asked Questions
What is the difference between a pivot point and support/resistance levels?
A pivot point is a calculated level based on the previous day's price action, while traditional support and resistance levels are based on historical price levels where the market has previously reversed or stalled.
How accurate are pivot points?
Pivot points are most accurate in ranging markets and during regular trading hours. They work best when combined with other technical analysis tools and market context.
Can pivot points be used for all timeframes?
Pivot points are most commonly used for daily timeframes, but they can be adapted for other timeframes by using the high, low, and close of the previous period.
What happens when price breaks through pivot levels?
When price breaks through a pivot level, it often indicates a potential trend change or continuation. The broken level may then act as support/resistance in the opposite direction.