P
PipsGrowth

Key Takeaways

Difficulty:Beginner
Reliability:High
Category:advanced
Timeframes:15M, 1H, 4H

Pivot Points

advancedšŸ“Š 15M, 1H, 4H

Support and resistance levels calculated from previous period high, low, and close.

Formula

Code
Pivot = (High + Low + Close) / 3
R1 = (2 Ɨ Pivot) - Low
S1 = (2 Ɨ Pivot) - High

Detailed Explanation

Pivot Points are calculated support and resistance levels based on the previous period's price action.

**Common Types:** - Standard (Floor) Pivots - Fibonacci Pivots - Camarilla Pivots - Woodie's Pivots

**Levels:** - R3, R2, R1: Resistance levels - P: Pivot point (central level) - S1, S2, S3: Support levels

Parameters

Type
Default: Standard
Pivot calculation method
Period
Default: Daily
Timeframe for calculation

šŸ“ˆ Bullish Signals

Price breaks above pivot point, holds above support levels

šŸ“‰ Bearish Signals

Price breaks below pivot point, rejected at resistance levels

Python Implementation

Standard pivot point calculation

Python
def calculate_pivots(high, low, close):
pivot = (high + low + close) / 3
r1 = 2 * pivot - low
s1 = 2 * pivot - high
r2 = pivot + (high - low)
s2 = pivot - (high - low)
return {'P': pivot, 'R1': r1, 'R2': r2, 'S1': s1, 'S2': s2}

TradingView Pine Script

Try on TradingView
JavaScript
//@version=5
indicator("Pivot Points", overlay=true)
// Built-in pivot function
pivot = ta.pivothigh(high, 5, 5)
plot(pivot, "Pivot High", style=plot.style_circles)
šŸ“Š Use TradingView for Advanced Charting
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MT5 MQL5 Code

C++
// Previous day data for pivot calculation
double prev_high = iHigh(_Symbol, PERIOD_D1, 1);
double prev_low = iLow(_Symbol, PERIOD_D1, 1);
double prev_close = iClose(_Symbol, PERIOD_D1, 1);
double pivot = (prev_high + prev_low + prev_close) / 3;

Common Mistakes

āœ—Not adjusting for timezone differences
āœ—Using without confirmation

Confirmation Signals

Price action at levels
Volume
Candlestick patterns

Best For

Intraday support/resistanceEntry/exit levelsDay trading

šŸ’” Pro Tips

  • ā€¢Calculated from previous day/week/month data
  • ā€¢Widely watched by professional traders
  • ā€¢Combine with other indicators for confirmation
Last updated: December 29, 2024

Educational Disclaimer

This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.

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Frequently Asked Questions

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