How pivot points work
Pivot points turn the previous period's range into levels for today. Price above the pivot (P) leans bullish, below it bearish; R1-R3 are resistance and S1-S3 support. Day traders use the daily pivots, swing traders the weekly ones.
The formulas
- Classic: P = (H + L + C) ÷ 3; R1 = 2P − L; S1 = 2P − H; R2 = P + (H − L); S2 = P − (H − L); R3 = H + 2(P − L); S3 = L − 2(H − P).
- Fibonacci: same P; R/S = P ± 0.382, 0.618 and 1.000 × (H − L).
- Camarilla: levels around the close: C ± (H − L) × 1.1 ÷ 12, ÷ 6, ÷ 4 and ÷ 2.
- Woodie: P = (H + L + 2C) ÷ 4, the rest as classic.
- DeMark: X = H + 2L + C if the close was below the open, 2H + L + C if above, H + L + 2C if equal; P = X ÷ 4, R1 = X ÷ 2 − L, S1 = X ÷ 2 − H.
Example on gold: high 4,050, low 3,990, close 4,020 gives a classic pivot of 4,020, R1 4,050 and S1 3,990.
Pivots work best together with session timing (killzones clock) and liquidity: the previous day's high and low are liquidity pools. For swing levels use the Fibonacci calculator.
Questions
Which pivot point method is best?
None is best for every market. Classic pivots are the most watched; Camarilla levels sit closer to price and suit short-term range trading.
Which high, low and close do I use?
For daily pivots, yesterday's. For forex and gold most traders use the New York close (5 pm New York time) as the end of the day.
Do pivot points work on gold and crypto?
The maths works on any market. For crypto, which trades 24/7, pick a fixed daily close, for example 00:00 UTC.
See fair value gaps, order blocks and liquidity drawn for you on live charts in ICC Charts, or train your eye in the free Chart Challenge game.
Open ICC Charts free → Play the chart gameNeed a broker account? Open Axi account (partner link: we may earn a commission; trading carries a high risk of losing money)
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