📊 TECHNICAL
Pivot Points
Classic floor-trader support/resistance levels derived from the prior period's high, low and close, with Camarilla, Woodie and Fibonacci variants offering alternative level spacing.
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Live Demo — Pivot Points applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is Pivot Points?
Pivot Points originated on open-outcry trading floors, giving locals a fast way to gauge intraday support and resistance from the previous session's range. The classic formula computes a central pivot from the prior high, low and close, then derives three tiers of resistance and support. Camarilla, Woodie and Fibonacci pivots keep the same inputs but change the multipliers used to space the levels.
Formula
Classic:
PP=(High+Low+Close)/3
R1=(2*PP)-Low S1=(2*PP)-High
R2=PP+(High-Low) S2=PP-(High-Low)
Camarilla:
R1=Close+(High-Low)*1.1/12 S1=Close-(High-Low)*1.1/12
Fibonacci:
R1=PP+0.382*(High-Low) S1=PP-0.382*(High-Low)Parameters
| Parameter | Default | Description |
|---|---|---|
| Pivot Type | Classic | Classic, Camarilla, Woodie, or Fibonacci |
| Timeframe Basis | Daily | Prior day/week/month H,L,C used as inputs |
| Levels Shown | PP, R1-R3, S1-S3 | Number of tiers displayed |
Signal Interpretation
- Price above the pivot is generally read as bullish bias; below is bearish bias.
- R1/S1 are the most frequently tested intraday levels; R2/S2, R3/S3 mark increasingly extreme targets.
- A break and hold above R1 often signals continuation toward R2/R3.
- Camarilla R3/S3 are designed as reversal zones for range-bound days; a break signals a breakout trade.
- Repeated rejection at the same level strengthens its reliability.
Tips & Best Practices
- Classic/Fibonacci pivots suit trending/breakout strategies; Camarilla suits range/reversal trading.
- Combine pivot levels with volume or candlestick confirmation.
- Most reliable on liquid instruments with a consistent daily range.