What it does
Pivot points turn the previous period's high, low and close into a set of horizontal levels for the current period. Traders use them as objective reference points for possible support and resistance. This indicator offers four popular formulas and three periods, draws the levels as stepped lines across history, and labels the current values at the right edge of the chart.
How it works
H, L and C are the high, low and close of the previous completed day, week or month, and R = H - L.
| Formula | Pivot | Resistance levels | Support levels |
|---|---|---|---|
| Classic | P = (H + L + C) / 3 | R1 = 2P - L, R2 = P + R, R3 = H + 2(P - L) | S1 = 2P - H, S2 = P - R, S3 = L - 2(H - P) |
| Fibonacci | P = (H + L + C) / 3 | P + 0.382R, P + 0.618R, P + R | P - 0.382R, P - 0.618R, P - R |
| Camarilla | P = (H + L + C) / 3 | C + 1.1R/12, C + 1.1R/6, C + 1.1R/4, C + 1.1R/2 | C - 1.1R/12, C - 1.1R/6, C - 1.1R/4, C - 1.1R/2 |
| Woodie | P = (H + L + 2C) / 4 | same as Classic using the Woodie P | same as Classic using the Woodie P |
R4 and S4 are only drawn for Camarilla. Periods follow broker server time. Because each period only uses completed data, the levels for a period never change once it starts.
How to use it
Common readings:
- Price above the pivot suggests a bullish bias for the session, below it a bearish bias.
- R1 and S1 are often the first areas where intraday moves pause; R2/S2 and R3/S3 are reached on more volatile days.
- Camarilla traders often watch R3/S3 for reversals and R4/S4 for breakouts.
Pivots work best on intraday charts of liquid instruments. They are more useful when they line up with other levels, such as previous highs or Fibonacci retracements. Load a second copy with the weekly period to see where daily and weekly levels cluster.
Settings
| Input | Default | What it changes |
|---|---|---|
| Pivot formula | Classic | Which set of equations is used |
| Pivot period | Daily | Daily, weekly or monthly levels |
| Bars of history to draw | 5000 | History drawn; 0 draws all bars |
| Show price labels | true | Labels with level name and price at the right edge |
| Popup alert / Push notification | false | Alerts once per bar when a close crosses a level |
Limitations
- Daily levels depend on the broker's server time, so different brokers can show different pivots.
- Brokers with short Sunday bars produce Monday pivots built from a tiny Sunday range when using daily pivots.
- Pivots are static levels; price can move through several of them on news days without reacting.
- On charts with a timeframe equal to or larger than the pivot period the levels are not meaningful.