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Pivot Points: Formula and How Traders Use Them | Borearis
Pivot points are levels derived from the previous session's high, low and close.
Formula
PP = (H + L + C) ÷ 3. R1 = 2PP − L, S1 = 2PP − H, R2 = PP + (H − L), S2 = PP − (H − L), R3 = H + 2(PP − L), S3 = L − 2(H − PP).
How traders use them
- As intraday reference for bias: above PP is stronger, below is weaker.
- As targets for the first move of the session.
- As confluence with support, resistance or a round number.
Limits
They are mechanical and widely watched, so fake breaks happen. Confirm with a close.
Use the pivot calculator for the seven levels.
Which session's data should I use?
For intraday trading, the previous day's high, low and close is standard.
Are pivot points reliable?
They are widely watched, so treat them as reference levels and confirm with price action.
Educational content only, not investment advice.