Pivot point formulas
H, L and C are the previous period's high, low and close; O is its open.
| Method | Pivot | Main levels |
|---|---|---|
| Classic | P = (H + L + C) ÷ 3 | R1 = 2P − L, S1 = 2P − H, R2 = P + (H − L), S2 = P − (H − L), R3 = H + 2(P − L), S3 = L − 2(H − P) |
| Fibonacci | P = (H + L + C) ÷ 3 | R1/S1 = P ± 0.382 × (H − L), R2/S2 = P ± 0.618 × (H − L), R3/S3 = P ± (H − L) |
| Camarilla | (H + L + C) ÷ 3 | R1 to R4 = C + (H − L) × 1.1 ÷ 12, 6, 4, 2; S1 to S4 = C − the same |
| Woodie | P = (H + L + 2C) ÷ 4 | R1 = 2P − L, S1 = 2P − H, R2 = P + (H − L), S2 = P − (H − L) |
| DeMark | P = X ÷ 4 | X = H + 2L + C if C < O, 2H + L + C if C > O, H + L + 2C if equal; R1 = X ÷ 2 − L, S1 = X ÷ 2 − H |
How traders use pivot points
- Bias. Price trading above the central pivot is often read as bullish for the day, below it as bearish.
- Targets and stops. R1 and S1 are common first targets; stops often sit just beyond the next level.
- Range or breakout. Camarilla traders often fade moves to R3 or S3 and trade breakouts beyond R4 or S4.
Pivot levels work best alongside other context, such as the session (see forex market hours) and recent swing highs and lows, which the Fibonacci calculator can turn into levels too.