Pivot Points
Learn Pivot Points for intraday support and resistance. Calculate daily, weekly, and monthly pivot levels.
What are Pivot Points?
Pivot Points are calculated support and resistance levels based on the previous day's (or week's/month's) price action. They're widely used by floor traders and institutions.
Pivot (P) = (High + Low + Close) / 3
R1 = (2 × P) - Low | S1 = (2 × P) - High
R2 = P + (High - Low) | S2 = P - (High - Low)
R3 = High + 2(P - Low) | S3 = Low - 2(High - P)
R1 = (2 × P) - Low | S1 = (2 × P) - High
R2 = P + (High - Low) | S2 = P - (High - Low)
R3 = High + 2(P - Low) | S3 = Low - 2(High - P)
R3
Strong Resistance
R2
Resistance
R1
First Resistance
PIVOT
Central Point
S1
First Support
S2
Support
S3
Strong Support
How to Interpret
- Price above Pivot: Bullish bias for the session
- Price below Pivot: Bearish bias for the session
- R1/S1: First intraday targets
- R2/S2: Extended targets, often reached on strong days
- R3/S3: Extreme levels, rarely reached
GarudaAlgo Implementation
GarudaAlgo Enhancement
GarudaAlgo calculates daily, weekly, and monthly pivot points automatically. When signals occur near these institutional levels, they receive higher probability scores due to the S/R confluence.
Timeframes
- Daily Pivots: For intraday trading
- Weekly Pivots: For swing trading
- Monthly Pivots: For position trading and major levels
Trading Strategy
- Use Pivot as the key decision level - above = buy dips, below = sell rallies
- Look for reversals at S1/R1 levels
- S2/R2 often act as the day's high/low
- Combine with candlestick patterns at pivot levels for entry