Pivot Points (Resistance and Support)


Pivots Points are price levels chartists can use to determine intraday support and resistance levels. Pivot Points use the previous days Open, High, and Low to calculate a Pivot Point for the current day. Using this Pivot Point as the base, three resistance and support levels are calculated and displayed above and below the Pivot Point.

Chart 1: Pivot Points (Resistance and Support)

How this indicator works

  • Pivot Point support and resistance levels can be used just like traditional support and resistance levels. As with all indicators, it is important to confirm Pivot Point signals with other aspects of technical analysis.


Resistance Level 3 = Previous Day High + 2(Pivot – Previous Day Low)

Resistance Level 2 = Pivot + (Resistance Level 1 – Support Level 1)

Resistance Level 1 = (Pivot x 2) – Previous Day Low

Pivot = Previous Day (High + Low + Close) / 3

Support Level 1 = (Pivot x 2) – Previous Day High

Support Level 2 = Pivot – (Resistance Level 1 – Support Level 1)

Support Level 3 = Previous Day Low – 2(Previous Day High – Pivot)

Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.