Pivot Points Calculator

Pivot Points Calculator

Our Pivot Points Calculator helps you determine key support and resistance levels based on the previous trading day’s high, low, and closing prices. Pivot points are essential tools used by traders to identify potential entry and exit points for their trades.

Key Inputs:

• Previous Day’s High: Enter the highest price traded during the previous trading day.
• Previous Day’s Low: Enter the lowest price traded during the previous trading day.
• Previous Day’s Close: Enter the closing price of the previous trading day.

Calculated Pivot Points:

1. Pivot Point (PP): The central pivot point calculated as:

   PP=Previous Day’s High+Previous Day’s Low+Previous Day’s Close3\text{PP} = \frac{\text{Previous Day’s High} + \text{Previous Day’s Low} + \text{Previous Day’s Close}}{3}PP=3Previous Day’s High, Previous Day’s Low, and Previous Day’s Close​

2. Support and Resistance Levels:

   • Support 1 (S1) and Resistance 1 (R1): Levels around the pivot point that are likely to act as support or resistance.

     $$\text{S1}=2\times \text{PP}-\text{Previous Day’s High}$$ $$\text{R1}=2\times \text{PP}-\text{Previous Day’s Low}$$

   • Support 2 (S2) and Resistance 2 (R2): Secondary support and resistance levels.

     $$\text{S2}=\text{PP}-(\text{Previous Day’s High}-\text{Previous Day’s Low})$$ $$\text{R2}=\text{PP}+(\text{Previous Day’s High}-\text{Previous Day’s Low})$$

   • Support 3 (S3) and Resistance 3 (R3): Additional levels if the price breaks through S2 or R2.

     $$\text{S3}=\text{Previous Day’s Low}-2\times (\text{Previous Day’s High}-\text{PP})$$ $$\text{R3}=\text{Previous Day’s High}+2\times (\text{PP}-\text{Previous Day’s Low})$$

Usage Tips:

• Trading Strategy: Use pivot points to identify potential levels for entering or exiting trades.
• Intraday Analysis: Recalculate pivot points daily for intraday trading strategies.
• Technical Analysis: Combine pivot points with other technical indicators for comprehensive market analysis.

Benefits:

• Objective Levels: Provides objective support and resistance levels based on previous price action.
• Decision Support: Helps traders make informed trading decisions based on key price levels.
• Versatility: Applicable to various financial markets, including stocks, forex, commodities, and indices.

How to use:

1. Enter the previous day’s high, low, and close prices.
2. Click ‘Calculate’ to generate pivot points and support/resistance levels.
3. Use the calculated levels to plan your trading strategy and manage risk effectively.

Enhance your trading strategy with our Pivot Points Calculator to identify strategic entry and exit points in the market.