How to calculate pivot points
Standard: 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: R/S = P ± (H − L) × 0.382, 0.618, 1.000
Camarilla: R/S = C ± (H − L) × 1.1 ÷ 12, 6, 4, 2
Woodie: P = (H + L + 2C) ÷ 4, then standard R1/S1/R2/S2
DeMark: X = H + 2L + C (C < O) | 2H + L + C (C > O) | H + L + 2C (C = O)
P = X ÷ 4 R1 = X ÷ 2 − L S1 = X ÷ 2 − H
Worked example
- Yesterday: high 110, low 90, close 100.
- P = (110 + 90 + 100) ÷ 3 = 100.
- R1 = 2 × 100 − 90 = 110; S1 = 2 × 100 − 110 = 90; R2 = 120; S2 = 80; R3 = 130; S3 = 70.
How to interpret pivot points
Trading above the pivot gives a bullish bias for the session, below it bearish. R levels act as potential resistance and S levels as support. Camarilla levels sit closer to the close and suit intraday mean reversion; standard and Fibonacci levels are wider. Combine with Fibonacci retracements to find confluence.
Limitations and common mistakes
- Use the session that matches your market: for 24-hour markets, decide on a consistent daily close (e.g. 00:00 UTC or New York close).
- Use the previous week's or month's H/L/C for weekly and monthly pivots.