Pivot Point Calculations

 Pivot Point Calculations:

A pivot point is a  calculations, used to determine the overall trend of the market over different time frames. The pivot point  is a simply average of Previous trading day's high and low, and the closing price.

There are various Calculation method to find the Pivot Point with Resistance and Support price.

Classic Pivot Point Calculation:

The Classic pivot points are the most basic and Familiar type of pivots. The pivot point Shows Major support and resistance levels  of the Trading Range.First-third level resistance and support points serve as additional indicators of possible trend reversal or continuation.

Pivot (P) = (H + L + C) / 3
Resistance (R1) = (2 x P) - L
R2 = P + H - L
R3 = H + 2 x (P - L)
Support (S1) = (2 x P) - H
S2 = P - H + L
S3 = L - 2 x (H - P)

Where H = Prev.High, L = Prev.Low, C = Prev.Close. 

Woodie Pivot Calculation:

Woodie's pivot points are similar to Classic pivot points, the difference being is that more weight is given to the Close price of the previous period.

Pivot (P) = (H + L + 2 x C) / 4
Resistance (R1) = (2 x P) - L
R2 = P + H - L
Support (S1) = (2 x P) - H
S2 = P - H + L

Camarilla Pivot Calculation:

Camarilla pivot points are a set of eight very probable levels which resemble support and resistance values for a current trend. The most important levels are S3. S4 and R3, R4.

R4 = (H - L) x 1.1 / 2 + C
R3 = (H - L) x 1.1 / 4 + C
R2 = (H - L) x 1.1 / 6 + C
R1 = (H - L) x 1.1 / 12 + C
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 Pivot Calculation:

DeMark's Pivot Points are conditional on the relationship between the close and the open.

If Close < Open: X = H + 2 x L + C
If Close > Open: X = 2 x H + L + C
If Close = Open: X = H + L + 2 x C
New High = X / 2 - L
New Low = X / 2 - H