Pivot points are price levels traders calculate from the previous session's high, low and close to map likely support and resistance for the day ahead. This page explains the classic formula and how to use the levels.

What is a pivot point?

A pivot point is a calculated reference price around which a market is expected to turn or continue. Traders plot it together with three resistance levels above (R1–R3) and three support levels below (S1–S3), giving a framework for the day's key zones before the market even opens.

The classic pivot formula

Pivot (PP)

(High + Low + Close) ÷ 3

Resistance

R1 = 2×PP − Low · R2 = PP + (High − Low) · R3 = High + 2×(PP − Low)

Support

S1 = 2×PP − High · S2 = PP − (High − Low) · S3 = Low − 2×(High − PP)

Worked example

Example · High 105, Low 95, Close 100

PP = (105 + 95 + 100) ÷ 3 = 100

R1 = 105, S1 = 95 · R2 = 110, S2 = 90 · R3 = 115, S3 = 85

How to use the levels

Trend reference: price above the pivot suggests bullish bias; below it, bearish.
Zones, not lines: treat R1/S1 as areas where moves may stall, not exact reversal prices.
Combine with other signals: a rejection at R1 alongside a trendline or momentum signal is stronger than the level alone.
Intraday use: many day traders trade bounces off S1/R1 toward the pivot or opposite level.

Limitations

Pivot levels are derived purely from yesterday's range — they have no causal power. In strong trends price can blow through them; in quiet markets they may cluster. Use them as a map, not a prophecy.

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Frequently asked questions

How do you calculate a pivot point?

Classic pivot = (previous high + previous low + previous close) ÷ 3. Resistance and support levels are derived from it using the high-low range.

What do R1, R2, R3 mean?

They're resistance levels above the pivot where selling pressure may appear. R1 is nearest, R3 furthest. S1–S3 are the mirrored support levels below.

Are pivot points reliable?

They're widely watched reference levels and can attract order flow, but they're not guarantees. Strong trends often ignore them.

Which markets use pivot points?

Forex, futures, indices and stocks — any market with continuous or daily price data. They're most popular with intraday traders.