Pivot Point CalculatorThe Formula
The formula for creating pivot points is based on 4 figures you need to obtain from yesterday's chart. You just need these values which can be obtained by looking at yesterday's candle on a daily chart:
High
Low
Open
Close
The key figure in your pivot point calculator is the central pivot point. This value is obtained by adding the High, Low and Close figures together and dividing the total by 3. That's it! You now have your central pivot point.
This pivot point now gives you the basis for calculating the other levels such as R1, R2, S1, and S2.
As the distance between these levels can sometimes be quite significant, many traders also put mid-levels on their charts and refer to them as M1, M2, M3, and M4. They are positioned as follows:
M1 - Between S1 and S2
M2 - Between S2 and the Central Pivot Point
M3 - Between the Central Pivot Point and R1
M4 - Between R1 and R2
The formulas for the other levels are:
S1: (Central Pivot Point x 2) minus the High
S2: Central Pivot Point minus (R1 minus S1)
R1: (Central Pivot Point x 2) minus the Low
R2: (Central Pivot Point minus S1) plus R1
Once these levels are calculated it is then easy to put the M levels in your pivot point calculator.
M1: S1 minus S2 divided by 2
M2: Central Pivot Point minus S1 divided by 2
M3: R1 minus Central Pivot Point divided by 2
M4: R2 minus R1 divided by 2Pivot points are one of the key tools traders use to determine where price is likely to go and where it is likely to stall. Either use the formulas above to create your own pivot point or use the Pivot Point Calculator.
The formula for creating pivot points is based on 4 figures you need to obtain from yesterday's chart. You just need these values which can be obtained by looking at yesterday's candle on a daily chart:
High
Low
Open
Close
The key figure in your pivot point calculator is the central pivot point. This value is obtained by adding the High, Low and Close figures together and dividing the total by 3. That's it! You now have your central pivot point.
This pivot point now gives you the basis for calculating the other levels such as R1, R2, S1, and S2.
As the distance between these levels can sometimes be quite significant, many traders also put mid-levels on their charts and refer to them as M1, M2, M3, and M4. They are positioned as follows:
M1 - Between S1 and S2
M2 - Between S2 and the Central Pivot Point
M3 - Between the Central Pivot Point and R1
M4 - Between R1 and R2
The formulas for the other levels are:
S1: (Central Pivot Point x 2) minus the High
S2: Central Pivot Point minus (R1 minus S1)
R1: (Central Pivot Point x 2) minus the Low
R2: (Central Pivot Point minus S1) plus R1
Once these levels are calculated it is then easy to put the M levels in your pivot point calculator.
M1: S1 minus S2 divided by 2
M2: Central Pivot Point minus S1 divided by 2
M3: R1 minus Central Pivot Point divided by 2
M4: R2 minus R1 divided by 2Pivot points are one of the key tools traders use to determine where price is likely to go and where it is likely to stall. Either use the formulas above to create your own pivot point or use the Pivot Point Calculator.
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