Pivot Points

Also called: floor pivots, classic pivots

Daily support and resistance levels calculated from the previous day's high, low, and close.

Pivot points generate a centre line (P) plus support (S1, S2, S3) and resistance (R1, R2, R3) levels for the current session, derived from prior-session high, low, close.

Day traders use pivots as reference points for entries and bias: trading above P = bullish for the day; below = bearish.

P = (High + Low + Close) / 3
R1 = 2P − Low
S1 = 2P − High
R2 = P + (High − Low)
S2 = P − (High − Low)

Pivot Points

Definition

Formula