Using the previous period's high, low, and close, compute the classic pivot point (P) and the first and second resistance (R1, R2) and support (S1, S2) levels as reference prices for intraday trading.
Input Data
Results
At a glance:The classic pivot point is the average of the prior high, low, and close; R/S levels are placed symmetrically around it.
Formula
pivot = (high + low + close) / 3
r1 = 2·pivot − low
s1 = 2·pivot − high
r2 = pivot + (high − low)
s2 = pivot − (high − low)
$$P = \dfrac{H + L + C}{3}$$$$R_1 = 2P - L, \quad S_1 = 2P - H$$$$R_2 = P + (H - L), \quad S_2 = P - (H - L)$$How to Use
- Enter the previous period's high, low, and close.
- Review the pivot point and R1/R2, S1/S2 levels.
FAQ
What is a pivot point and how is it used?
A pivot point is a reference price derived from the prior period's high, low and close. The market's relationship to it shows the day's bias: trading above the pivot is seen as bullish (support), below it as bearish (resistance). The classic levels are PP, R1/S1, R2/S2.
Why two resistance and two support levels rather than three?
This calculator uses the classic (floor trader's) method and gives the first and second levels (R1/S1, R2/S2). R1/S1 is the first expected bounce zone; R2/S2 the next, further from the pivot. Some conventions extend to R3/S3, but the two-level classic set is the most widely used. Price reaching R2/S2 signals a stronger move that day.
What time frame and market does it suit?
Pivot points are mainly used in intraday trading (the prior day's HLC computes the next day's levels) and are common in forex, indices and futures. In less liquid or news-driven markets the levels lose reliability and should be combined with other tools.
What is the most common calculation method?
The standard (floor trader's) method: PP = (H + L + C) ÷ 3; R1 = 2×PP − L; S1 = 2×PP − H; R2 = PP + (H − L); S2 = PP − (H − L). H/L/C are the prior period's high, low, close, usually the previous trading day. This calculator uses the standard method with H, L, C as inputs.
What are the limitations of pivot points?
First, they are mechanically derived from past prices and only indicate likely support/resistance, not certainty. Second, the 'previous period' choice varies (day/week/month) and levels differ widely, so define the period consistently. Third, on major news or gaps they can fail and price may pierce several levels at once. Fourth, levels are best combined with volume, trend and candlestick signals rather than traded alone. Treat pivot points as a reference framework, not a guaranteed turning point; for real trading, manage risk with stops and position sizing, and follow exchange and regulatory rules.
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.