Pivot Point Calculator

About Pivot Point Calculator

Welcome to the Pivot Point Calculator, a professional technical analysis tool designed for day traders, swing traders, and technical analysts. This calculator computes pivot points along with support (S1, S2, S3, S4) and resistance (R1, R2, R3, R4) levels using five industry-standard methods: Standard, Fibonacci, Woodie, Camarilla, and DeMark.

What Are Pivot Points?

Pivot points are technical analysis indicators used to determine overall market trends over different time frames. The pivot point itself represents a level of highest probability price reversal, calculated as an average of the high, low, and closing prices from the previous trading period.

Professional floor traders originally developed pivot points to set key levels for intraday trading. Today, they remain one of the most widely used indicators because:

• They are objective - calculated from actual price data, not subjective interpretation
• They are predictive - calculated before the trading session begins
• They are self-fulfilling - many traders watch the same levels, increasing their effectiveness

Understanding Support and Resistance Levels

Resistance Levels (R1, R2, R3, R4)

Resistance levels are price points where selling pressure is expected to overcome buying pressure, potentially causing price to stall or reverse downward. In an uptrend, traders watch resistance levels as potential profit-taking targets.

Support Levels (S1, S2, S3, S4)

Support levels are price points where buying pressure is expected to overcome selling pressure, potentially causing price to bounce. In a downtrend, traders watch support levels as potential entry points for long positions.

The Central Pivot Point (PP)

The pivot point serves as the primary support/resistance level and trend indicator. If price opens above the pivot, the bias is bullish. If price opens below, the bias is bearish.

Pivot Point Calculation Methods

1. Standard (Classic) Method

The most widely used method, favored for its simplicity and effectiveness across all markets:

Support and resistance levels are calculated using the pivot point and price range.

2. Fibonacci Method

Incorporates Fibonacci retracement ratios (38.2%, 61.8%, 100%) for traders who use Fibonacci analysis:

3. Woodie Method

Gives extra weight to the closing price, making it more responsive to recent price action:

4. Camarilla Method

Produces tighter, more clustered levels ideal for intraday scalping and range trading:

5. DeMark Method

Adapts calculations based on the open/close relationship, producing dynamic levels that reflect market sentiment:

• If Close < Open: X = High + (2 × Low) + Close
• If Close > Open: X = (2 × High) + Low + Close
• If Close = Open: X = High + Low + (2 × Close)

How to Use This Calculator

1. Enter price data: Input the previous period's High, Low, and Close prices. For DeMark, also enter the Open price.
2. Select method: Choose from Standard, Fibonacci, Woodie, Camarilla, or DeMark based on your trading style.
3. Set precision: Select decimal places appropriate for your asset (2 for most stocks, 4-5 for forex).
4. Calculate: Click the button to generate all pivot levels.
5. Analyze results: Review the visual chart, trading signal, and step-by-step calculations.

Method Comparison Guide

Trading Strategies Using Pivot Points

Breakout Trading

When price breaks above R1 with strong volume, consider a long position targeting R2. Place stop-loss just below the pivot point. Reverse logic applies for breaks below S1.

Range Trading

In ranging markets, buy near support levels and sell near resistance. Camarilla pivots are particularly effective for this strategy due to their tighter levels.

Trend Confirmation

If price consistently stays above the pivot point throughout the session, the trend is bullish. Use pullbacks to the pivot as buying opportunities with stops below S1.

Frequently Asked Questions

What are pivot points in trading?

Pivot points are technical analysis indicators used by day traders to identify potential support and resistance levels. They are calculated using the previous trading period's high, low, and close prices. When price approaches these levels, traders watch for potential reversals or breakouts.

Which pivot point method is best?

The best method depends on your trading style. Standard (Classic) is most widely used and works for most markets. Fibonacci is popular for its mathematical elegance. Woodie emphasizes closing price and suits trend traders. Camarilla is designed for intraday scalping with tight levels. DeMark adapts to market conditions based on open/close relationship.

How do traders use support and resistance levels?

Traders use support levels (S1, S2, S3) as potential buying zones where price may bounce. Resistance levels (R1, R2, R3) are potential selling zones where price may reverse. A break above resistance suggests bullish momentum, while a break below support indicates bearish pressure. Traders also place stop-loss orders near these levels.

What is the difference between Standard and Camarilla pivot points?

Standard pivot points use the simple average of high, low, and close, producing wider levels suited for swing trading. Camarilla pivot points produce tighter, more clustered levels around the closing price using specific multipliers, making them ideal for intraday scalping and range trading strategies.

How accurate are pivot points?

Pivot points are self-fulfilling prophecies - they work because many traders watch the same levels. Their accuracy varies by market conditions and timeframe. They tend to be more reliable in ranging markets and when combined with other indicators like volume, trend lines, or moving averages.

Additional Resources

• Pivot Points - Wikipedia
• Technical Analysis - Wikipedia