Pivot Point Calculator

Understanding Your Pivot Point Levels

You've just calculated pivot points using the DailyFX tool—and now you're looking at a cluster of support and resistance levels surrounding a central Pivot Point (PP). These levels are more than just numbers; they serve as potential inflection zones where price action often reacts. Whether you're trading intraday or over the course of a week or month, these figures can help frame your strategy in a clear, structured way.

How to Read What You’re Seeing

Each set of outputs you see—S1, S2, S3, R1, R2, R3 (and sometimes S4, R4)—offers a map of likely support and resistance levels. Depending on the calculation method you chose (Standard, Woodie, Camarilla, or Fibonacci), the results may vary slightly, but they all revolve around a single core principle: using past price data to forecast potential future reaction zones.

3 Key Signals from Your Pivot Point Output

1. Price vs. Pivot Point (PP): If price is trading above the PP, it often suggests a bullish bias. Below the PP? That tilts sentiment bearish. This isn’t a rule—it’s a guidepost.
2. Support and Resistance Interactions: Price respecting levels like S1 or R1 shows that traders are watching those zones. Frequent touches with rejection (e.g. candles with long wicks) often signal strong levels.
3. Breakouts and Follow-Through: A clean break through R1 or S1—especially with volume—can signal momentum and open the door to R2 or S2 targets. Use confirmation like RSI or MACD to strengthen your case.

Calculation Method Matters

Not all pivot points are created equal. Here's a breakdown of what your selected method might be telling you:

• Standard (Floor): Balanced and widely used. Good for most markets and timeframes.
• Woodie: Heavier weight on the close. Some traders prefer this during trending conditions.
• Camarilla: Packed with multiple close-in support/resistance levels. Popular for scalping or tight-range trading.
• Fibonacci: Uses Fibonacci ratios—appealing if you’re already incorporating Fibs into your strategy.

What to Watch Next

Now that you have your pivot map, here are practical ways to apply it on your chart and plan the next step:

• Overlay Levels: Add the S1, PP, and R1 levels onto your trading chart. Match them against recent price action—are there overlaps with other indicators or price clusters?
• Set Conditional Orders: You can set stop entries just above R1 or below S1 to catch potential breakouts, with stops just under/over the pivot to manage risk.
• Fade or Follow: If price approaches R1 but fails multiple times, consider fading the move (shorting near R1 with a stop above). If it breaks R1 with force, look to follow through toward R2.

Risk Factors to Keep in Mind

Pivot points are guides, not guarantees. Here’s how to keep a level head when price gets volatile:

• Levels Can Lose Strength: The more times a level is tested, the more likely it is to break. S1 that held yesterday may not hold today.
• Market Conditions Change: Range-bound markets work well with pivot points. In strong trends, price can slice through multiple levels quickly.
• Use Confluence: Don’t rely on pivot points alone. Pair them with indicators like volume, RSI, or price patterns to add weight to your setup.

Time Frame Adjustments

The calculator lets you choose between daily, weekly, and monthly pivot levels. Each serves a purpose depending on how long you plan to hold your trade:

• Daily: Ideal for intraday traders. Provides fresh levels every day based on the prior session.
• Weekly: Helps swing traders stay anchored to bigger moves. Weekly PP often acts as a magnet for price.
• Monthly: More strategic in nature. Good for position traders or as a macro-level guide.

Tips to Trade Around Pivot Points

To round things out, here are a few go-to tactics that many traders use when working with pivot levels:

1. Use PP as a Bias Filter: Only look for longs above the pivot and shorts below it. Keeps your trades aligned with market momentum.
2. Bracket Strategies: If price is range-bound, you might sell near resistance (R1 or R2) and buy near support (S1 or S2), expecting a bounce.
3. Breakout Strategies: In trending markets, wait for a clean break of R1 or S1, then trade in that direction toward the next level (R2/S2).
4. Watch the First Hour: In intraday trading, early moves often determine how pivot levels will play out. Use this window to assess strength or failure at key zones.

Your pivot point results give you structure—levels to anchor your trades and build scenarios around. Keep these numbers close, track how price responds, and let them shape how you manage entries, exits, and stop placements.