Pivot Point Calculator
Quickly compute pivot point with accurate formulas. See amortization schedules, growth projections, and side-by-side comparisons.
Reviewed by Daniel Agrici, Founder & Lead Developer
Formula
PP = (High + Low + Close) / 3 | R1 = 2×PP − Low | S1 = 2×PP − High
The standard pivot point (PP) is the average of the previous period's high, low, and close. Support and resistance levels are derived from this central value. R1 and S1 are first-level support/resistance, R2/S2 are second-level, and R3/S3 are third-level. Fibonacci pivots multiply the range by Fibonacci ratios. Camarilla pivots use a different formula that generates levels closer to the close price.
Worked Examples
Example 1: EUR/USD Daily Pivot Calculation
Problem:Previous day: High 1.1050, Low 1.0950, Close 1.1020.
Solution:PP = (1.1050 + 1.0950 + 1.1020) / 3 = 1.1007\nR1 = (2 × 1.1007) - 1.0950 = 1.1063\nS1 = (2 × 1.1007) - 1.1050 = 1.0963\nR2 = 1.1007 + (1.1050 - 1.0950) = 1.1107\nS2 = 1.1007 - (1.1050 - 1.0950) = 1.0907
Result:PP: 1.1007 | R1: 1.1063 | S1: 1.0963 | Bullish bias
Example 2: GBP/USD Pivot with Fibonacci
Problem:Previous day: High 1.2700, Low 1.2600, Close 1.2650.
Solution:PP = (1.2700 + 1.2600 + 1.2650) / 3 = 1.2650\nRange = 0.0100\nFib R1 = 1.2650 + (0.382 × 0.0100) = 1.2688\nFib S1 = 1.2650 - (0.382 × 0.0100) = 1.2612
Result:PP: 1.2650 | Fib R1: 1.2688 | Fib S1: 1.2612
Frequently Asked Questions
What are pivot points in trading?
Pivot points are technical analysis indicators calculated from the previous period's high, low, and close prices. They produce a central pivot point (PP) along with support levels (S1, S2, S3) and resistance levels (R1, R2, R3). Floor traders on the NYSE and CME originally used pivot points to determine key levels for the trading day. Today, they are widely used in forex, stocks, and futures trading. The pivot point itself acts as a reference: price above PP suggests bullish bias, price below PP suggests bearish bias.
How do I trade using pivot points?
Basic pivot point strategies include: 1) Bounce Trading: buy at support levels (S1, S2) and sell at resistance levels (R1, R2) in range-bound markets. 2) Breakout Trading: when price breaks above R1, go long targeting R2. When price breaks below S1, go short targeting S2. 3) Bias Trading: if price opens above PP, look for long entries. If below PP, look for short entries. 4) Confluence: combine pivots with other analysis — when a pivot level aligns with a trendline, moving average, or Fibonacci level, it becomes a stronger level.
What timeframe should I use for pivot point calculations?
The input timeframe depends on your trading style. Day traders use the previous day's high, low, and close (daily pivots). Swing traders may use weekly pivots (previous week's HLC). Position traders use monthly pivots. The most commonly used are daily pivots. For forex, the daily candle close time matters — most platforms use the New York close (5 PM ET) as the daily close. Using different close times will produce different pivot levels, so be consistent with your broker's candle times.
Are pivot points reliable indicators?
Pivot points are self-fulfilling to some degree because so many traders watch them. They work best in liquid markets (major forex pairs, S&P 500) where large numbers of participants use similar levels. They are most reliable during active sessions (London, New York). However, no indicator is 100% reliable. Pivot points should be used as one tool among many — combine them with price action, volume analysis, and other technical indicators. They work well for identifying key levels but should not be used as sole entry/exit signals.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy