Know the 3 Other Types of Pivot Points
Most trading platforms can draw’em for ya, but you should also know how to crunch those numbers yourself in case of nuclear war…huh?
Read MoreDetermine significant daily, weekly, and monthly support and resistance levels with the help of pivot points. To learn more about how they work, check out our Pivot Points lesson.
Select your "Time Interval" and "Symbol" and Pivot Points will automatically be calculated below. You can also switch to "Manual" mode if you'd like to input your own OHLC prices.
Levels | Floor | Woodie | Camarilla | Demark | Fibonacci |
R4 | |||||
---|---|---|---|---|---|
R3 | |||||
R2 | |||||
R1 | |||||
PP | |||||
S1 | |||||
S2 | |||||
S3 | |||||
S4 |
The floor pivot points are the most basic and popular type of pivots. The pivot point is interpreted as the primary support/resistance level - the point at which the main trend is determined. First-third level resistance and support points serve as additional indicators of possible trend reversal or continuation.
Pivot (P) = (H + L + C) / 3 Resistance (R1) = (2 x P) - L R2 = P + H - L R3 = H + 2 x (P - L) Support (S1) = (2 x P) - H S2 = P - H + L S3 = L - 2 x (H - P)
Woodie's pivot points are similar to floor pivot points, the difference being is that more weight is given to the Close price of the previous period.
Pivot (P) = (H + L + 2 x C) / 4 Resistance (R1) = (2 x P) - L R2 = P + H - L Support (S1) = (2 x P) - H S2 = P - H + L
Camarilla pivot points are a set of eight very probable levels which resemble support and resistance values for a current trend. The most important is that these pivot points work for all traders and help in setting the right stop-loss and profit-target orders.
R4 = (H - L) x 1.1 / 2 + C R3 = (H - L) x 1.1 / 4 + C R2 = (H - L) x 1.1 / 6 + C R1 = (H - L) x 1.1 / 12 + C S1 = C - (H - L) x 1.1 / 12 S2 = C - (H - L) x 1.1 / 6 S3 = C - (H - L) x 1.1 / 4 S4 = C - (H - L) x 1.1 / 2
Another popular method of calculating the pivots to forecast the future of the trend is Tom DeMark's pivot points, which are not pivot points exactly, but are the predicted lows and highs of the period.
If Close < Open: X = H + (2 x L) + C If Close > Open: X = (2 x H) + L + C If Close = Open: X = H + L + (2 x C) R1 = (X / 2) - L S1 = (X / 2) - H
Fibonacci pivot point levels are determined by first calculating the floor pivot points. Next, multiply the previous day's range with its corresponding Fibonacci level. Most traders use the 38.2%, 61.8% and 100% retracements in their calculations. Finally, add or subtract the figures you get to the pivot point and voila, you've got your Fibonacci pivot point levels!
R3 = PP + ((High - Low) x 1.000) R2 = PP + ((High - Low) x 0.618) R1 = PP + ((High - Low) x 0.382) PP = (H + L + C) / 3 S1 = PP - ((High - Low) x 0.382) S2 = PP - ((High - Low) x 0.618) S3 = PP - ((High - Low) x 1.000)
Knowing is not enough, we must apply. Willing is not enough, we must do.Johann Wolfgang von Goethe