What is Pivots Points
Pivots Points are price levels chartists can use to determine intraday support and resistance levels. Pivot Points use the Yesterday's High, Low and close price to calculate Pivot Points for the current day. Using the Central Pivot Point (PP) as the base, three resistance and support levels are calculated and displayed above and below the Central Pivot Point (PP)
Know types of Pivot Points that use by traders. These Pivots use various formulas for calculating Pivot Support and Resistance Levels:
Floor Pivot (classic) - Woodie Pivot - Camarilla Pivot - De Mark's Pivot - Fibonacci Pivot
Formula Type 0 - known as Floor Pivot or Pivot Point which is the most basic and popular pivots used by traders. This pivot type is standard on most trading platform.
The formulas for calculating Floor Pivot Support and Resistance Levels are as follows:
Three levels of resistance are plotted above the central pivot point with the notations of R1, R2 and R3.
(R1) = 2 x PP - Yesterday's Low
(R2) = PP + (Yesterday's High - Yesterday's Low)
(R3) = Yesterday's High +2 x (PP - Yesterday's Low)
(Central Pivot Point (PP) = (Yesterday's High + Yesterday's Low + Yesterday's Close) / 3
And three levels of support are plotted below the central pivot point with the notations of S1, S2 and S3.
(S1) = 2 x PP - Yesterday's High
(S2) = PP - (Yesterday's High + Yesterday's Low)
(S3) = Yesterday's Low - 2 x (Yesterday's High - PP)
The other commonly used Pivot Points calculation use Yesterday's High, Low, Close and Today's Open price.
Calculate Pivot Levels For Any Trading Instrument
Enter yesterday high, low, close and today open price