Pivot Point Calculator

Pivot Point Calculator

This is a complete Pivot Point Calculator that can calculate almost all major pivot types. Just input today’s open, high, low and close value in the pivot point calculator below to get tomorrow’s support and resistance levels. Mobile users need to scroll horizontally to see the whole calculator.

Pivot Point Calculator FAQ

What is pivot point calculator?

Pivot Point Calculator or in short form PPC is an easy technical analysis tool where traders can input today’s open, high, low and close (OHLC) value to get tomorrow’s support and resistance levels. Generally, the PPC can calculate all 5 types of Pivot Points eg Classic, Camarilla, Fibonacci, Woodie, and DeMark.

What is daily pivot?

Daily pivot uses today’s open, high, low and close data to calculate tomorrow’s support and resistance values. It uses the daily OHLC values to get the next day’s support and resistance. Hence it is called a daily pivot.

How is pivot point calculated?

There is a total of 5 types of Pivot Points. They are Classic, Camarilla, Fibonacci, Woodie, and DeMark. Out of them the most common and popular is the Classic Pivot. It is easy to calculate. We can get today’s 3 supports S1, S2, and S3 as well as today’s 3 resistances R1, R2 and R3 from yesterday’s open, high, low and close data.

Pivot Point Calculation

How to use the Pivot Point Calculator?

Classic Pivot Points

A popular trading system is the pivot point bounce trading system. It uses a short term timeframe like 5-minutes or 15-minutes along with the classic daily pivot points. This system trades the price action, so bouncing off of any of the support or resistance levels or even the midpoints.

Pivot points mark support and resistance levels that are calculated using the open, high, low, and close of the previous trading day. The pivot points provide us with the pivot point itself and 6 full support and resistance points. These levels jointly called the pivot points. Once the price approaches a pivot point (especially for the first time in any direction), it will have a tendency to reverse. It is this reversal that’s utilized by the pivot point bounce trading system.

Traders generally use a five-minute OHLC (Open, High, Low, and Close) candlestick chart to trade the daily pivot points. The default trading time is after the market is open. For best results trade in the early morning or after 2 PM.

This Pivot Point Calculator works on all markets

The following tutorial steps are used in both the equity and commodity markets. Precisely the same steps are used on whichever markets you’re trading with this strategy.

Identify the trend bias

The open of the day detect the overall trend of the day. If open if above the pivot point the trend bias is up. On the other hand if the open is below the pivot the trend bias is down. If today’s PP is greater than yesterday’s PP the long term trend bias is up. While if today’s PP is less than yesterday’s PP the long term trend is down.

The best trades happen if the price opens in between PP and S1 or PP and R1. Wait for the price to touch the pivot point or the R1 or the S1. That happens once price trades at the pivot point price or at R1 or S1. Enter your trade once the high (or low) of the primary price candles fail to form a new low (or high) and the pattern is broken. The next section outlines the steps needed for each long and short entries.

Long Trade
  • Open should be above the PP.
  • The price candle touches the pivot point.
  • Next few price candles fail to form a new low.
  • A next price candle breaks the high of the previous swing high.
  • The target will be R1.

If the open is below the PP but above the S1, the entry in a long trade is once the following price candle breaks the high of the entry bar say at S1. The target will be Pivot and R1. The default stop loss will be the mid-point between S1 and S2. The stop loss is adjusted to be either the mid-point between S1 and S2 or the low of the entry candle.

Short Trade
  1. Open should be below the PP.
  2. The price candle touches the pivot point.
  3. The next few price candles fail to form a new high.
  4. A next price candle breaks the low of the previous swing high.
  5. The target will be S1.

If the open is above the PP but below the R1, the entry in a short sell trade is once the following price candle breaks the low of the entry bar, say at R1. The target will be Pivot and S1. The default stop loss will be the mid-point between R1 and R2. The stop loss is adjusted to be either the mid-point between R1 and R2 or the high of the entry candle.

If your target order gets fulfilled, then your trade is a winning trade. If your stop-loss order gets fulfilled, then your trade is a losing trade.

Example of using the Classic Pivot in the Pivot Point Calculator

On Friday the 8th of November 2019, Yes Bank share opened at 772, made high at 777.85, made low at 770.30 and closed at 771.35. So we used these levels to calculate the supports and resistances using our Pivot Point Calculator. Check the image below. On the classic pivots, we got 773.17 as the PP, 776 as the R1 and 768.48 as the S1. Now let’s see what happened on Monday the 11th of November 2019.

Pivot Point Calculator (Classic Pivots)

Apart from the price action alone, we used an overbought oversold oscillator to identify the market condition. Price opened below the PP, so the trend is down. The price tested the PP with the oscillator also in an overbought condition. That can be a selling opportunity, but better to have a confirmation from a bearish candle. Price crashed from the PP to S1 with the oscillator reaching the oversold region. This is a buying opportunity, but again better to have confirmation from a bull candle. Intraday traders can make quick money using this trading technique.

Pivot Point Bounce Trading System

Video Example

Now watch the video below, to know the way to trade Classic Pivot Points.

Woodie’s Pivot Points

The formula employed in the calculation of Woodie Pivot Points are:

R4 = R3 + range
R3 = H + 2 * (PP – L) (same as: R1 + RANGE)
R2 = PP + range
R1 = (2 * PP) – LOW
PP = (HIGH + LOW + (TODAY’S OPEN * 2)) / 4
S1 = (2 * PP) – HIGH
S2 = PP – range
S3 = L – 2 * (H – PP) (same as: S1 – RANGE)
S4 = S3 – range

Where R1 through R4 are Resistance levels one to four, PP is that the Pivot point, S1 through S4 are support levels one to four, range is that the High minus the Low for the given timeframe (usually daily).

Use of Pivot Point Calculator on gap days

One of the key differences in calculating Woodie’s Pivot Point to other pivot points is that the current trading session’s open value is used (in some calculators) within the formula with the previous session’s high and low. Woodie PP is typically useful in gap days. As many times using the classic Pivot Point price can gap above R1 or below S1. These days are hard to trade with the classic PP. But as in Woodie PP, the current day’s open is also considered, we get perfect trading levels even on a gap day.

Example of using Pivot Point Calculator on gap days

On Friday, the 8th of November 2019, Infosys Technologies opened at 722, made high at 724.25, made a low at 705.50 and closed at 708.15. So we have calculated the Woodie Pivot using this data with our Pivot Point Calculator. We got the PP at 711.51, S1 at 698.78 at R1 at 717.53.

Pivot Point Calculator (Woodie Pivots)

On Monday the 11th of November 2019, INFY opened gap down at 698.90, took exact support at Woodie Pivot S1 level. Made a low at 698 and bounced back from there. So in gap days, Woodie Pivot is especially helpful.

Camarilla Pivot Points

Camarilla equation is another popular way to use pivot points. It has a PP and 5 supports and 5 resistances. Out of them the most important is the PP and S3 and R3.

How to trade the Camarilla Pivot Points?

The open is important. Look for open between S3 and R3. S3 is the buying zone for a target of S2, S1, and PP. Similarly, R3 is a short sell zone for a target of R2, R1, and PP. In case the price moves past R4 it is breakout buy for a target of R5. On the other hand, is price falls below S4 it is breakdown sell for a target of S5. An advanced Camarilla Pivot Point Calculator and trading strategy is given here.

Demark Pivot Points

The formula utilized in the calculation of the Tom DeMark “Pivot Points” are:

  • The value of X within the formula below depends on wherever the market has closed.
  • If Open > Close then X = (H + (L * 2) + C)
  • If Open < Close then X = ((H * 2) + L + C)
  • If Open and Close are same then X = (H + L + (C * 2))
  • Resistance 1 = X / 2 – L
  • Pivot Point = X / 4 (this isn’t officially inside the DeMark range. This is only taken as a reference for the calculation of X)
  • Support 1 = X / 2 – H

So we saw we get three levels only in Demark Pivot. The upper resistance, the PP and the lower support. Our Pivot Point Calculator only calculates the Resistance and the support. So this type of pivot is easy to trade. Rules are simple to buy at support and sell at resistance.

Fibonacci Pivot Points

Apart from these 4 types of pivots, there is another type of pivot which is calculated on the basis of the Fibonacci trading theory. Our calculator does not have this strategy. To get this type of pivots you can open a 5-minute or 15-minute chart in Zerodha Kite terminal.

Fibonacci Pivots

The trading rules with this type of pivot is again very simple. If the market opens or crosses above the PP the trend bias is up. Buy in a retracement to PP. And if the market opens or crosses below the PP the trend bias is down. Short sell in a retracement to PP. Crossing the PP in the first few candles set the mood of the day. Check the example below. On 11th November 2019, ICICI Bank opened below PP. Then it crossed PP with a big candle. Again retraced back to PP and took exact support at PP and rallied to R1 and R2.

Fibonacci Pivots

Suggested reading on Pivot Point Calculator

For Pivot Point lovers I will suggest the following ebook: Candlestick and Pivot Point Trading Triggers: Setups for Stock, Forex, and Futures Markets + Website (Wiley Trading). This book is written by John L Person. This is a really comprehensive book on the subject.

Free Download Pivot Point PDF

Here we provide you the PDF of chapter 5 of the ebook. This chapter is about floor pivots. So you can read the sample of it now before you decide to buy the ebook. Use any of the social share buttons below to unlock your download.

Conclusion

Pivot Point trading is a very popular way of trading for a long time. Many traders and even foreign institutional investors use the Pivot Point Calculator to find their entry points. For this, a bulk number of entries and exits are done at the pivot levels. This makes the system highly accurate even today.