Pivot PointsPP
Pivot points are support and resistance levels calculated from the previous period's high, low and close, widely used by intraday traders.
Pivot points turn the prior period’s high, low and close into a central level plus support and resistance lines for the next period. Intraday traders use them as a ready-made map.
- Category
- Indicators and Tools
- Reading time
- 3 min
- Also called
- Floor pivots, Standard pivot points
- Updated
Pivot points in plain words
Pivot points use the previous period's high, low and close to estimate where support and resistance may sit.1
They produce one central pivot (P) plus several support (S) and resistance (R) levels.2
Because they are known before the session opens, StockCharts calls Pivot Points predictive or leading indicators.1
How standard pivot points are calculated
Pick the period
For today's intraday chart, use only yesterday's high, low and close.1
Compute P
P = (High + Low + Close) ÷ 3.
Compute R1 and S1
R1 = 2P − Low; S1 = 2P − High.
Compute R2 and S2
R2 = P + (High − Low); S2 = P − (High − Low).
Read the tone
Trading above P suggests strength; below P suggests weakness.
Watch breaks
If price breaks above R1, that shows extra strength, with R2 as the next target.1
Worked examples
Example 1 — Calculating levels
Levels setYesterday a hypothetical stock had high 110, low 100, close 105.
| P | 105 |
| R1 | 110 |
| S1 | 100 |
| R2 | 115 |
| S2 | 95 |
These levels come from the prior period's high, low, and close.1
Example 2 — Break of R1
Target R2The hypothetical stock opens at 106 and breaks 110.
| Price | 111 |
The break above R1 signalled strength, pointing to R2 at 115.1
Example 3 — Break of S1
Target S2Another hypothetical session drops through 100.
| Price | 99 |
Breaking below S1 showed weakness, with S2 at 95 as the next target.1
Pivot point types
| Aspect | Standard (Traditional) | Fibonacci |
|---|---|---|
| Centre P | (H + L + C) ÷ 3 | Same |
| Level spacing | Range multiples | 0.382 and 0.618 of range |
| Popularity | Most common | Common |
| Best for | General intraday | Fibonacci-minded traders |
Where pivot points are used
Intraday levels
Plan Day Trading entries at P, R1 and S1.
Targets and stops
Set Take Profit and Stop Loss at the next level.
Session bias
Judge tone at the Market Hours open.
Confluence
Combine with Fibonacci Retracement and Extension and Volume-Weighted Average Price.
Advantages and disadvantages
Advantages
- Objective and known in advance.
- Simple arithmetic.
- Widely watched levels.
- Works across markets.
Disadvantages
- Ignore today’s new information.
- Many variants give different levels.
- Gaps can skip levels.
- Less useful in strong trends.
Going deeper
Read as far as you need. Each level builds on the one before it.
Leading by construction
Beginner
Because they are computed before the session, Pivot Points are predictive or leading indicators.1
Many variants
Intermediate
TradingView’s indicator offers several types: Traditional Fibonacci Woodie Classic DM Camarilla, so traders should agree on which one they use.2
Different meaning of the term
Advanced
Some platforms use the name for something else — swing-point “pivots” that flag possible reversals — which isn't the floor-pivot formula.3
Common mistakes
Mixing pivot types
Use one formula consistently.
Wrong period data
Daily pivots need prior-day data.
Treating levels as walls
They are zones, not guarantees.
Ignoring gaps
A gap can jump several levels.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- Pivots come from the prior high, low and close.
- P is the average of the three.
- R and S levels frame the session.
- They are leading indicators.
- Several variants exist.
Frequently asked questions
Are pivots leading or lagging?
Which formula is standard?
Do they work on weekly charts?
Further learning
- Support and Resistance
What pivots estimate.
- Fibonacci Retracement and Extension
Basis of Fibonacci pivots.
- Volume-Weighted Average Price
Another intraday reference.
- Day Trading
Where pivots are most used.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- StockCharts ChartSchool. Pivot Points (opens in a new tab) Checked .
- TradingView. Pivot Points Standard – Help Center (opens in a new tab) Checked .
- Fidelity. Pivot Points (High/Low) (opens in a new tab) Checked .
Read more elsewhere
- Trading Metrics (our sister site): Pivot Points (opens in a new tab)
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. Trading Metrics is our sister site, under the same ownership; we are not affiliated with any other publisher linked above. Last reviewed . Report an error or request a source credit.