What pivot points are
From the previous period's high, low and close you compute a pivot (P) and resistance (R) and support (S) levels around it before the session starts. Day and swing traders use them to map the price zones ahead.
Classic formulas
- P = (high + low + close) ÷ 3
- R1 = 2P − low, S1 = 2P − high
- R2 = P + (high − low), S2 = P − (high − low)
- R3 = high + 2(P − low), S3 = low − 2(high − P)
The Fibonacci variant adds and subtracts 38.2%, 61.8% and 100% of the range from P; Woodie weights the close and uses the open; Camarilla builds tight levels (R1–R4, S1–S4) around the close.
Use and caveats
Pick the period that matches your chart (previous day for a daily view, previous week for a weekly one). Pivots are reference lines, not guaranteed support or resistance — pair them with a stop rule. For 24-hour markets such as crypto, fix the day boundary and use it consistently.
FAQ
Which method should I use?
Classic is the most common. Levels differ by method, so choose the one most traders in your market watch.
When does the day start in crypto?
It varies by venue — often UTC midnight or 09:00 KST. Match your chart's daily candle.
Why is open optional?
Only Woodie uses the open; Classic, Fibonacci and Camarilla do not need it.
Do pivots work?
There is no guarantee. Their value is that many traders watch the same lines.