Most Advanced Pivot Point Calculator
There are various types of indicators in Technical Analysis. Pivot Points are one of the most simple and important static indicators for Technical Analysis in the stock market. It is very tedious to calculate the pivot points manually.
Therefore, the Pivot point calculator has been given below to easy the process of calculating pivot points. It can calculate four types of Pivot points for you i.e. Classic Pivot points, Woodie's Pivot Points, Camarilla Pivot points and DeMark's pivot points.
The Pivot Calculator is powered by Investing.com
How to use the Pivot Point Calculator
It is very easy and simple to use the above calculator. For example, the stock of amazon opened on 1500 and it made low of 1485 and high of 1525 and closed on 1520.
- Enter 1525 in the high price column.
- Enter 1485 in the low price column.
- Enter 1520 in the close price column.
- Enter 1500 in the open price column.
- Click on the calculate.
You will get all the pivot points in a single click.
Using this pivot point, various other Support and Resistance levels are calculated. If the stock price goes above the pivot point, it is believed that there is a bullish sentiment for the period. If the stock price goes below the pivot point, it is believed that there is a bearish sentiment for the period.
> What are Pivot Points?
Pivot Points are one of the simplest and widely used tools of Technical Analysis. Basically, a pivot point is a mean of High, Open and Close of a prior trading day. This point is a very important level because a stock or currency pair revolves around it.
Using this pivot point, various other Support and Resistance levels are calculated. If the stock price goes above the pivot point, it is believed that there is a bullish sentiment for the period. If the stock price goes below the pivot point, it is believed that there is a bearish sentiment for the period.
Three resistance levels and three support levels are calculated based on this point. If the stock hits all the three support levels, then there is a very heavy downtrend. If the stock hits all the three resistance levels, then there is a very heavy uptrend.
Formulae for different types of Pivot Points
Classic Pivot Points
These are the simplest pivot points among all the different types of pivot points. These are also known as the Floor Pivot Points. These levels are the most used among all the other points. They give various support and resistance levels for trading. The trading which involves pivot points is known as the Pivottrading. The formulae are :
- Pivot(PP) = (H+L+C)/3
- Resistance(R1) = (2*PP - L)
- R2 = (PP+H-L)
- R3 = H + 2(PP-L)
- Support(S1) = (2*PP-H)
- S2 = (PP-H+L)
- S3 = L - 2(H-PP)
Woodie's Pivot Calculator or Woodie's Points
These points were found by Woodie. These are also very good resistance and support levels which are highly used by traders but not more than Floor pivot points. These points give more weight to the closing price of the prior day. The formulae are :
- Pivot(PP) = (H+L+ 2*C)/4
- Resistance(R1) = (2*PP - L)
- R2 = (PP+H-L)
- Support(S1) = (2*PP-H)
- S2 = (PP-H+L)
Camarilla Calculator or Camarilla Points
These pivot points have been found by Camarilla. These points give very useful levels for the traders to set stop loss and targets. They are being used for a very long time and some modern traders also use these points. These are set of eight levels, unlike the other pivot points. The formulae are:
- Resistance(R1) = (H - L) x 1.1 / 12 + C
- R2 = (H - L) x 1.1 / 6 + C
- R3 =(H - L) x 1.1 / 4 + C
- R4 = (H - L) x 1.1 / 2 + C
- Support(S1) = C - (H - L) x 1.1 / 12
- S2 = C - (H - L) x 1.1 / 6
- S3 = C - (H - L) x 1.1 / 4
- S4 = C - (H - L) x 1.1 / 2
DeMark's Points
These points have been found by Tom DeMark. They are calculated by comparing the open and close prices to calculate X. Then, by using X, new high and low points are calculated. These are not as widely used as other pivot points. The formulae are given below:
They don't work well in volatile markets. So pay high attention when there is a lot of volatility in the market. If you are a beginner, then try to avoid trading in high volatile market conditions. The most important thing in trading is discipline. If you are disciplined enough to follow your trading plan, then eventually you will make money.
- If Close < Open: X = H + 2*L + C
- If Close > Open: X = 2*H + L + C
- If Close = Open: X = H + L + 2*C
- New High = X/2 - L
- New Low = X/2 - H
Difference between Pivot Points and other indicators
Pivot points are the static indicator that means their values do not change for the period and it remains constant. But other indicators like RSI, moving averages etc. change their value over the period of time.
The Static behaviour of these points helps the traders to plan without bothering about the change which stabilises the mindset of a trader and helps him to make good decisions. But traders need to make a very good plan for the entry and exit of their positions and follow the plan with tight discipline.
The major usage of Pivot levels
Pivot levels are mainly used by short term traders like intraday traders. You can't rely on these levels for the long term trading decisions or investment purposes. Pivot levels are very good to use for intraday trading.
