In this article
Before the market opens, many intraday traders already have a map of the day: a central pivot level with support levels below and resistance levels above. These pivot points come from simple maths on the previous session’s prices, and they’re among the most widely watched levels in trading.
This article is for education only and is not investment advice. Trading involves risk of loss.
How pivot points are calculated
Classic (standard) pivots use the previous session’s High (H), Low (L) and Close (C):
Pivot (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)
Example: yesterday's High 22,450, Low 22,180, Close 22,390.
P = (22,450 + 22,180 + 22,390) ÷ 3 = 22,340
R1 = 22,500 · R2 = 22,610 · R3 = 22,770
S1 = 22,230 · S2 = 22,070 · S3 = 21,960
How intraday traders use them
1. Market bias
- Opening and trading above P → bullish bias; traders look for buys near support.
- Trading below P → bearish bias; traders look for sells near resistance.
2. Support and resistance
Price often slows, stalls or reverses near S1/R1. A clean break through a level, especially with strong volume, can signal continuation towards the next level.
3. Targets and stops
- A long trade from near S1 might target P or R1, with a stop below S2.
- A breakout above R1 might target R2.
Levels are zones, not exact prices. Allow a small buffer — price often overshoots a level slightly before reacting.
Classic vs other pivot types
| Type | Key feature | Popular with |
|---|---|---|
| Classic | The standard; most widely watched | Most traders |
| Fibonacci | Uses 38.2%, 61.8% and 100% of the range from P | Traders who use Fibonacci tools |
| Camarilla | Tight levels around the close; R3/S3 and R4/S4 key | Intraday mean-reversion and breakout traders |
| Woodie | Gives extra weight to the close | Some intraday traders |
Camarilla in brief
Using the same example, Camarilla levels are much closer to the close:
- R4 = 22,538.50 · R3 = 22,464.25
- S3 = 22,315.75 · S4 = 22,241.50
A common approach: fade moves towards R3/S3 (expecting a reversal) and trade breakouts beyond R4/S4.
Combine pivots with other evidence
Pivots are more reliable when they line up with:
- Previous day’s high/low or other obvious chart levels
- Round numbers (like 22,500 on an index)
- Moving averages or VWAP
- Volume and candlestick behaviour at the level
And always manage risk: decide the stop-loss and position size before entering.
Calculate pivots instantly
Our Pivot Point Calculator shows Classic, Fibonacci, Camarilla and Woodie levels side by side from the previous high, low and close — ready for your pre-market plan.
Free toolTry the Pivot Point CalculatorGet support and resistance levels for the next session.Frequently asked questions
Which session's data should I use?
For daily pivots, use the previous trading day's high, low and close. For weekly pivots, use last week's values.
Why do traders watch pivot levels?
Because so many traders and algorithms watch the same levels, price often reacts around them — a self-fulfilling effect.
Do pivot points work for all instruments?
They're used for indices, stocks, commodities and currencies. They tend to be more useful for liquid instruments with many active traders.
For education only — not investment advice or a recommendation to buy or sell any security. Trading involves risk of loss. Verify charges and prices with your broker. Written by the Toolsopedia team. Spotted an error? Tell us and we’ll fix it.