Pivot Point Calculator

Pivot point is a technical analysis indicator used to determine potential support and resistance levels for an asset. It is based on the previous day’s price action and is calculated by taking the average of the previous day’s high, low, and close prices.

Importance of Pivot Points

• Pivot points can be used to identify potential price levels where a trend may reverse, or where a price may encounter support or resistance.
• Pivot point levels can be used to identify potential entry and exit points for trades.

For example :-

If a stock is trading above its pivot point level, a trader might look to enter a long position, and if it is trading below its pivot point level, they might look to enter a short position.

• Pivot points can also be used in conjunction with other technical indicators to confirm trades or to identify potential targets.
• Pivot points can be calculated using different methods, such as the traditional method, the Woodie’s method, or the Camarilla method, each of which can produce slightly different levels.

How To Trade On Pivot Points Levels

1. Breakout trading

One common strategy is to trade breakouts above or below the pivot point level.

For example :-

1. If a stock is trading above its pivot point level and breaks through a resistance level, a trader might look to enter a long position.
2. If a stock is trading below its pivot point level and breaks through a support level, a trader might look to enter a short position.

2. Range trading

Another approach is to trade within the range defined by the pivot point and the support and resistance levels.

For example:-

1. If a stock is trading between the pivot point and the first support level, a trader might look to enter a long position near the support level and exit near the pivot point or the first resistance level.
2. If a stock is trading between the pivot point and the first resistance level, a trader might look to enter a short position near the resistance level and exit near the pivot point or the first support level.

3. Trend following

Pivot points can also be used in conjunction with other technical indicators to identify trends and potential targets.