Indicators / Support and resistance / Pivot points
Pivot Points Explained: Support, Resistance and Daily Bias
Quick answer
Pivot points are support and resistance levels calculated from the previous period's high, low and close. The central pivot (P) sets the bias: above it is bullish, below it bearish. R1 and R2 above and S1 and S2 below act as reaction zones and targets.
Video: Pivot Points for Beginners.
What pivot points show
Pivot points turn the previous day's (or week's) range into a set of levels for the next one. Because so many traders use the same formula, the levels often attract reactions.
How pivot points are calculated
R1 = 2 × P − low S1 = 2 × P − high
R2 = P + (high − low) S2 = P − (high − low)
Which period to use
| Chart | Pivot period |
|---|---|
| 1 to 15 minute | Daily pivots |
| 1 to 4 hour | Weekly pivots |
| Daily | Monthly pivots |
For stocks, pivots use the previous regular session; for 24/7 markets such as crypto, daily pivots usually reset at 00:00 UTC.
How to read pivot points
1. Bias from P
Opening and holding above P suggests a bullish session; below P, bearish.
2. Levels as reaction zones
R1 and S1 are the most commonly tested levels. A clean break and hold of R1 opens the way to R2.
3. Targets and stops
Traders often target the next pivot level and place stops beyond the previous one.
Common mistakes
- Expecting every level to hold. In strong trends price runs through several levels.
- Mixing up the period. Daily pivots on a daily chart say little.
What to pair pivot points with
- Volume Profile to see whether pivots line up with volume nodes.
- RSI for momentum at the level.
- ADX to judge whether levels are likely to hold or break.
Pivot points FAQ
What is the central pivot point?
P = (high + low + close) ÷ 3 of the previous period. Price above it suggests a bullish bias.
Do pivot points work on stocks and crypto?
Yes. Stocks use the previous session's high, low and close; 24/7 markets such as crypto usually reset daily pivots at 00:00 UTC.
Which pivot level is most important?
P first, then R1 and S1, which are the most frequently tested.