Pivot Points Standard Calculator

Standard Pivot Points Formula:

\[ \begin{align*} Pivot (P) &= (High + Low + Close)/3 \\ Resistance 1 (R1) &= 2P - Low \\ Support 1 (S1) &= 2P - High \\ Resistance 2 (R2) &= P + (High - Low) \\ Support 2 (S2) &= P - (High - Low) \\ Resistance 3 (R3) &= High + 2(P - Low) \\ Support 3 (S3) &= Low - 2(High - P) \end{align*} \]

Pivot Point (P):

Resistance 1 (R1):

Support 1 (S1):

Resistance 2 (R2):

Support 2 (S2):

Resistance 3 (R3):

Support 3 (S3):

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1. What Are Standard Pivot Points?

Standard Pivot Points are technical analysis indicators used to determine overall market trends and potential support/resistance levels. They are calculated using the high, low, and closing prices from the previous trading period.

2. How Does the Calculator Work?

The calculator uses the standard pivot point formulas:

\[ \begin{align*} Pivot (P) &= (High + Low + Close)/3 \\ R1 &= 2P - Low \\ S1 &= 2P - High \\ R2 &= P + (High - Low) \\ S2 &= P - (High - Low) \\ R3 &= High + 2(P - Low) \\ S3 &= Low - 2(High - P) \end{align*} \]

Where:

\( High \) — Highest price from previous period
\( Low \) — Lowest price from previous period
\( Close \) — Closing price from previous period

Explanation: The pivot point (P) serves as the primary support/resistance level, with additional levels calculated above (resistance) and below (support) this point.

3. Importance of Pivot Points

Details: Pivot points help traders identify potential reversal points, determine market sentiment, and set profit targets or stop-loss orders. They are widely used in day trading and short-term trading strategies.

4. Using the Calculator

Tips: Enter the high, low, and close prices from the previous trading period (daily, weekly, etc.). All values must be positive numbers. Results will show the pivot point and three support/resistance levels.

5. Frequently Asked Questions (FAQ)

Q1: What time frame should I use for pivot points?
A: Daily pivot points are most common, but weekly/monthly are used for longer-term analysis, while intraday pivots are used for short-term trading.

Q2: How accurate are pivot points?
A: They work best in markets with clear trends and good liquidity. Effectiveness varies by market conditions and asset class.

Q3: Should I use standard pivot points or other variations?
A: Standard pivots are most common, but Fibonacci, Woodie's, and Camarilla pivots offer alternative calculations that may work better in certain markets.

Q4: Can pivot points be used for all financial instruments?
A: They work well for stocks, forex, commodities, and indices, but may be less effective for instruments with low liquidity.

Q5: How should I interpret the pivot levels?
A: Prices above pivot suggest bullish sentiment, while prices below suggest bearish sentiment. Support/resistance levels indicate potential reversal zones.