Pivot Point Calculator

In a price chart a pivot point is the sum of an instrument’s previous trading day high, close and low prices, divided by three. On the following trading session if the instrument’s price is below the pivot point level it can signal an ongoing downtrend, while if the instrument’s price is above the pivot point level it can be interpreted as an ongoing uptrend.

The pivot point calculating formula (High+Low+Close)/3 of a financial instrument maps out the pivot point levels consisting of the pivot level and the three levels of price support and resistance. These support and resistance price levels can be traded much the same way as trading from the regular support and resistance levels and trendlines, using a mix of breakout and bounce trading strategies.

The major advantage for the pivot point strategy is the fact that it is a very common one, as so many traders, including large institutional professional traders, use the same levels based on the same formula. Pivot point strategies are popular as those levels are predictive as opposed to lagging. Several traders use the calculations of an asset’s previous trading day price to calculate the possible reversal points, or breakout levels, for the current trading session.

Our Pivot Point Calculator will accurately calculate the 7 pivot points of any financial instrument’s price: the pivot point, the 3 resistance price levels, and the 3 support price levels. The three most common levels are the pivot point (PP), the first level of resistance (R1) and the first level of support (S1).