Types and Variations of Pivot Points
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Thread: Types and Variations of Pivot Points

  1. #1
    Trader ara's Avatar
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    Types and Variations of Pivot Points

    Hello all, today I learned about pivot points, and I found that there were several types of pivot points. This is the first time I learned about pivot points after years of being in this business. Yep, I never traded using a pivot point strategy but it doesn't hurt me to know a lot about the pivot points and it's variations. I am sure there are members here who know about this, but I think this is useful especially for beginners, hopefully this thread will be useful and informative.

    I found there are 3 other types of pivot points (source from google) that can be used for trading (other than standard pivot points). They are Woodie, Camarilla, and Fibonacci.
    Pivot Point is one of the measurements in technical analysis that can provide a more consistent picture of Support and Resistance because of its static nature. Basically, Pivot Points (standard) are obtained by the following calculations:

    Pivot Point (PP) = (High + Low + Close / 3)

    R3 = High + 2 x (PP - Low)
    R2 = PP + (High - Low)
    R1 = (2 x PP) - Low


    S1 = (2 x PP) - High
    S2 = PP - (High - Low)
    S3 = Low - 2 x (High - PP)



    Woodie Pivot Point

    PP = (High + Low + (Today's open price * 2)) / 4

    R3 = High + 2 * (PP - Low)
    R2 = PP + High – Low
    R1 = (2 X PP) – Low


    S1 = (2 X PP) – High
    S2 = PP – High + Low
    S3 = Low - 2 * (High - PP)


    In the formula above, we can see that the Woodie Pivot Point calculation is very different from the standard Pivot Point method. In addition, in calculating support and resistance, you will use the difference between the highest (High) and lowest (Low) prices the previous day, or commonly known as the price range. Some traders prefer to use the Woodie formula, because it is more focused on today's opening price.

    Camarilla Pivot Point

    PP = (High + Low + Close) / 3

    R4 = Close + ((High - Low) x 1.1/2)
    R3 = Close + ((High - Low) x 1.1/4)
    R2 = Close + ((High - Low) x 1.1/6)
    R1 = Close + ((High - Low) x 1.1/12)

    S1 = Close – ((High - Low) x 1.1/12)
    S2 = Close – ((High - Low) x 1.1/6)
    S3 = Close – ((High - Low) x 1.1/4)
    S4 = Close – ((High - Low) x 1.1/2)


    The Camarilla formula uses the closing price (Close) on the previous day and the range to calculate the Support and Resistance levels. The most prominent of these Pivot Point types is that we need to count 8 main levels (4 support and 4 resistance) next to the Pivot Point itself.

    Found by Nick Scott in 1989, the main concept of Camarilla Pivot Point is based on the idea that prices have a tendency to return to the closing level in the previous period. Therefore, the trading recommendation is to buy in S3 or sell when the price reaches R3. But if the price breaks the S4 or R4, it means that the trend movement is very strong, so you can use a breakout rather than bounce strategy.

    Fibonacci Pivot Point

    PP = (High + Low + Close) / 3

    R3 = PP + ((High – Low) x 1.000)
    R2 = PP + ((High – Low) x 0.618)
    R1 = PP + ((High – Low) x 0.382)

    S1 = PP – ((High – Low) x 0.382)
    S2 = PP – ((High – Low) x 0.618)
    S3 = PP – ((High – Low) x 1.000)


    To calculate all Support and Resistance levels in this Pivot Point type, you need to determine the middle Pivot Point through the calculation method as in the standard method. Next, we just multiply the price range in the previous period with certain Fibonacci levels. In this case, most traders use 38.2%, 61.8% and 100% in their calculations.

    In the end, the calculation method can produce Support and Resistance lines which become a combination of Pivot Point levels and Fibonacci magic.

    Actually, just like all the other indicators and technical strategies that you have learned so far, there is no best type of Pivot Point that can be harmonized for all traders. It all depends on how you combine knowledge about Pivot Points with all other indicators on the trading chart. You can try one by one of the three types of Pivot Points above by means of Backtest and Forward Test, to find out which ones are truly in line with your understanding and system when trading with Pivot Points.

    If you trade using a pivot point strategy, you can share here ...
    If you have any type of pivot point indicator, please share here ...
    If you have an image of any type of pivot point, please attach here ...

  2. #2
    Quote Originally Posted by ara View Post
    Hello all, today I learned about pivot points, and I found that there were several types of pivot points. This is the first time I learned about pivot points after years of being in this business. Yep, I never traded using a pivot point strategy but it doesn't hurt me to know a lot about the pivot points and it's variations. I am sure there are members here who know about this, but I think this is useful especially for beginners, hopefully this thread will be useful and informative.

    I found there are 3 other types of pivot points (source from google) that can be used for trading (other than standard pivot points). They are Woodie, Camarilla, and Fibonacci.
    Pivot Point is one of the measurements in technical analysis that can provide a more consistent picture of Support and Resistance because of its static nature. Basically, Pivot Points (standard) are obtained by the following calculations:

    Pivot Point (PP) = (High + Low + Close / 3)

    R3 = High + 2 x (PP - Low)
    R2 = PP + (High - Low)
    R1 = (2 x PP) - Low


    S1 = (2 x PP) - High
    S2 = PP - (High - Low)
    S3 = Low - 2 x (High - PP)



    Woodie Pivot Point

    PP = (High + Low + (Today's open price * 2)) / 4

    R3 = High + 2 * (PP - Low)
    R2 = PP + High – Low
    R1 = (2 X PP) – Low


    S1 = (2 X PP) – High
    S2 = PP – High + Low
    S3 = Low - 2 * (High - PP)


    In the formula above, we can see that the Woodie Pivot Point calculation is very different from the standard Pivot Point method. In addition, in calculating support and resistance, you will use the difference between the highest (High) and lowest (Low) prices the previous day, or commonly known as the price range. Some traders prefer to use the Woodie formula, because it is more focused on today's opening price.

    Camarilla Pivot Point

    PP = (High + Low + Close) / 3

    R4 = Close + ((High - Low) x 1.1/2)
    R3 = Close + ((High - Low) x 1.1/4)
    R2 = Close + ((High - Low) x 1.1/6)
    R1 = Close + ((High - Low) x 1.1/12)

    S1 = Close – ((High - Low) x 1.1/12)
    S2 = Close – ((High - Low) x 1.1/6)
    S3 = Close – ((High - Low) x 1.1/4)
    S4 = Close – ((High - Low) x 1.1/2)


    The Camarilla formula uses the closing price (Close) on the previous day and the range to calculate the Support and Resistance levels. The most prominent of these Pivot Point types is that we need to count 8 main levels (4 support and 4 resistance) next to the Pivot Point itself.

    Found by Nick Scott in 1989, the main concept of Camarilla Pivot Point is based on the idea that prices have a tendency to return to the closing level in the previous period. Therefore, the trading recommendation is to buy in S3 or sell when the price reaches R3. But if the price breaks the S4 or R4, it means that the trend movement is very strong, so you can use a breakout rather than bounce strategy.

    Fibonacci Pivot Point

    PP = (High + Low + Close) / 3

    R3 = PP + ((High – Low) x 1.000)
    R2 = PP + ((High – Low) x 0.618)
    R1 = PP + ((High – Low) x 0.382)

    S1 = PP – ((High – Low) x 0.382)
    S2 = PP – ((High – Low) x 0.618)
    S3 = PP – ((High – Low) x 1.000)


    To calculate all Support and Resistance levels in this Pivot Point type, you need to determine the middle Pivot Point through the calculation method as in the standard method. Next, we just multiply the price range in the previous period with certain Fibonacci levels. In this case, most traders use 38.2%, 61.8% and 100% in their calculations.

    In the end, the calculation method can produce Support and Resistance lines which become a combination of Pivot Point levels and Fibonacci magic.

    Actually, just like all the other indicators and technical strategies that you have learned so far, there is no best type of Pivot Point that can be harmonized for all traders. It all depends on how you combine knowledge about Pivot Points with all other indicators on the trading chart. You can try one by one of the three types of Pivot Points above by means of Backtest and Forward Test, to find out which ones are truly in line with your understanding and system when trading with Pivot Points.

    If you trade using a pivot point strategy, you can share here ...
    If you have any type of pivot point indicator, please share here ...
    If you have an image of any type of pivot point, please attach here ...
    This thread reminds me of good old days when I was a baby trader , I would have to calculate the pivot levels manually using previous day candle high , low , open and close .Anyway , that was over twelve years ago now and I will never go into any manual calculation of such because there are so many pivot indicators that will automatically generate those levels for you on the chart and there is one I have been using to trade forex , the chart below shows how it appears on the chart


  3. #3
    One of the very reasons that I don't like the pivot point trading is because they have too many different schools of thoughts, that can be really confusing, I don't want anything that can add to my misunderstanding of this market, support and resistance is just fine for me, I think Forex would be a lot easier if each person trades with their various systems which they know like the palm of their hands.

  4. #4
    Trader Killer_Queen's Avatar
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    those formulas really complicated even for me to read them all. half of the description i just skipped because i have no idea and do not want to make my head think that setups then ruin my strategy. from those formulas of making the pivot points, one thing i can understand the least is with fibonacci ones even though i never understand to use it but those numbers are already familiar to me and still allowed to read based on my logic.

  5. #5
    If you are a day trader and your choice of market analysis is technical analysis , you will definitely find pivot levels useful in your trading because those pivot levels provide support and resistance to the price . You can easily use them to decide your entry and exit points of your trades . It is good to know how each of those pivot levels is obtained and this thread has already explained that in details though you may not go through this calculation all the times since there is a programmed indicator that would help you do the calculation and charting

  6. #6
    Quote Originally Posted by layigold View Post
    If you are a day trader and your choice of market analysis is technical analysis
    you are doing this and its good i also day trader before this i was using daily order means i closes on daily basis in case of profit and daily 3$ was my target but because of some issues and one order i got in 15 days in loss so make sure you do proper trade you do on base of experience what you have learned. in technical i am doing well and its good but some people think fundamental is good but i never recommend it

  7. #7
    Energy Divergence is an extremely basic yet influential idea in technical analysis. A bullish dissimilarity happens when prices are making lower lows, however, the Momentum indicator or other oscillator is making higher lows. On a similar line of reasoning, a bearish difference happens when prices are making a higher high, however, the Momentum indicator or other oscillator is making a lower high. This polarity or dissimilarity gives early insights to the trader of debilitating force which could prompt a price retracement or a total trend reversal.

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