Pivot points are a widely recognized trading tool which have long been used by financial traders. They are a fairly good indication of the range of price movements especially when confirmed by Fibonacci or support and resistance lines. Find below a complete Pivot Point Calculator, formulas, guide and instructions.
PIVOT POINT CALCULATOR TOOL
Pivot points are historically derived from the previous day’s low, high and closing prices, plus the opening price. In order to successfully use this Pivot Points calculator, you only need to get the values of the previous day’s high, low and closing prices and the opening price, input those values into the calculator fields and click on calculate. The tool immediately display support, resistance and pivot points.
In addition to the central pivot the calculation also yields levels of resistance and support either side of the pivot. These are referred to as S1, S2, S3, S4 and R1, R2, R3, R4. The three most important levels are R1, S1 and the actual pivot point.
Other popular method of calculating the pivot point - Woodie's, Camarilla and De Mark's - are shown as well.
Tom DeMark's pivot points are calculated predicting lows and highs of the period, Woodie's pivot points give more weight to closing prices while Camarilla pivot points are a set of eight very probable levels which resemble support and resistance values for a current trend.
Classic Pivot Points Formula
- Support level 1 (S1) = 2 * PIVOT – HIGH
- Support level 2 (S2) = PIVOT – (R1 – S1)
- Support level 3 (S3) = LOW – 2*(High – Pivot)
- Pivot Point (PP) = ( HIGH + CLOSE + LOW ) / 3
- Resistance level 3 (R3) = HIGH + 2 * (Pivot – Low)
- Resistance level 2 (R2) = PIVOT + (R1 – S1)
- Resistance level 1 (R1) = 2 * PIVOT – Low
De Mark's Pivot Points Formula
- If Close < Open Then X = H+2×L+C;
- If Close > Open Then X = 2×H+L+C;
- If Close = Open Then X = H+L+2×C;
- New High = X/2-L;
- New Low = X/2-H
Woodie's Pivot Points Formula
- Pivot (P) = (H+L+2×C)/4
- Resistance (R1) = (2×P)-L
- R2 = P+H-L
- Support (S1) = (2×P)-H
- S2 = P-H+L
Camarilla Pivot Points Formula
- R4 = (H-L)×1.1/2+C
- R3 = (H-L)×1.1/4+C
- R2 = (H-L)×1.1/6+C
- R1 = (H-L)×1.1/12+C
- S1 = C-(H-L)×1.1/12
- S2 = C-(H-L)×1.1/6
- S3 = C-(H-L)×1.1/4
- S4 = C-(H-L)×1.1/2