Frequently Asked Questions
How are pivot points calculated?
The classic pivot P = (High + Low + Close) ÷ 3. Support and resistance levels are derived from P and the prior range (R1, S1, R2, S2, R3, S3).
What are pivot points used for?
Day traders use them as intraday reference levels for likely support, resistance, and reversal zones, computed from the previous session's data.
What does price above the pivot mean?
Trading above P is generally read as bullish bias for the session; below P as bearish. The R/S levels mark potential targets and stops.
Are there other pivot formulas?
Yes. Beyond the classic floor-trader pivot, common variants include Fibonacci pivots (which apply Fibonacci ratios to the range), Woodie pivots (which weight the close more heavily), Camarilla pivots (which compress the levels closer to price for tighter intraday ranges), and DeMark pivots (which adjust the pivot point based on whether the close is above or below the open). This calculator uses the standard classic method.
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This calculator provides estimates for educational purposes only and is not investment advice. Past performance does not guarantee future results. Consult with a qualified financial advisor before making investment decisions. All investments carry risk, including potential loss of principal.