Last updated: June 2026
Pivot Points, Support and Resistance Levels Explained
Pivot Points are widely used by day traders and technical analysts to map potential support and resistance levels before the trading session begins. The classic Pivot Point formula uses the previous session's high, low, and close to calculate a central Pivot Point, then builds resistance levels above it and support levels below it.
How are Pivot Points calculated?
R1 = (2 × PP) - Low
S1 = (2 × PP) - High
The calculator first finds the central Pivot Point by averaging the high, low, and closing price from the previous period. From that central level, it calculates the first, second, and third resistance levels above the market, as well as the first, second, and third support levels below the market.
What is the Pivot Point?
The Pivot Point is the central reference level traders use to judge whether price is trading above or below the previous session's balanced price area.
What are resistance levels?
Resistance levels are price zones above the Pivot Point where buyers may slow down, sellers may appear, or price may test possible breakout areas.
What are support levels?
Support levels are price zones below the Pivot Point where sellers may slow down, buyers may react, or price may test possible downside targets.
Pivot Point calculation examples
The examples below show how the classic Pivot Point method can be applied to Forex pairs, gold, and stocks using the previous period's high, low, and close prices.
How traders use Pivot Points
Many traders use Pivot Points as a daily price map. When price trades above the central Pivot Point, they may watch R1, R2, and R3 as potential resistance levels or upside targets. When price trades below the Pivot Point, they may watch S1, S2, and S3 as potential support levels or downside targets.
Pivot Points are especially popular among intraday traders because they provide clear levels before the session starts. However, the levels are more useful when combined with trend direction, price action, market structure, volume, and major economic news.
Are Pivot Points useful for day trading?
Yes. Pivot Points are widely used in day trading because they convert the previous session's data into clear support and resistance levels for the current session. They are often used in Forex, gold, stock index, and commodity trading.
