Skip to content
SCUTA
Indicatorsbeginner
R1 = 2 × PP − LOW\_PREVS1 = 2 × PP − HIGH\_PREVPP

Pivot Points

Price levels calculated from the prior period's high, low, and close that act as projected support (S1–S3) and resistance (R1–R3) for the next session.

Also called PP · Daily Pivots · Floor Pivots

Formula
PP = (High_prev + Low_prev + Close_prev) / 3;
R1 = 2 × PP − Low_prev;  S1 = 2 × PP − High_prev;
R2 = PP + (High_prev − Low_prev);  S2 = PP − (High_prev − Low_prev)

Pivot Points use the previous period's high, low, and close to project a central pivot (PP) and support/resistance levels for the upcoming session. Floor traders used them for decades before electronic markets.

  • R1 = 2 × PP − Low_prev, R2 = PP + (High − Low), R3 = High + 2 × (PP − Low)
  • S1 = 2 × PP − High_prev, S2, S3 similarly derived

Price above the pivot favours a bullish session; below, bearish. S1/R1 are the most traded levels; S3/R3 are rare but significant. Camarilla and Woodie variants adjust the formulas for different trading styles.

Related terms