Lesson T4.7 · 7 of 7 · Trend, support and resistance
Pivot points: the classic formula, Fibonacci, Camarilla and Woodie
The pivot point is the average of yesterday’s high, low and close: P = (H + L + C) ÷ 3. From it you work out today’s resistance levels (R1, R2, R3) and support levels (S1, S2, S3). Day traders use them as reference points on intraday charts; they do not predict prices, they show where many traders are looking.
Terms in this lesson
- Day trading
- You buy and sell on the same day, to profit from small price moves.
- Support and resistance
- Prices at which a stock has often stopped falling or stopped rising.
- Stop-loss
- An order that sells automatically if the price falls to a level you choose.
How to calculate pivot points: the classic formula
Definition
What is a pivot point?
Yesterday’s average price, the base for today’s support and resistance levels.
H is yesterday’s high, L the low and C the close. P = (H + L + C) ÷ 3. Above P you calculate the resistance levels R1, R2 and R3; below it the support levels S1, S2 and S3. Floor traders originally used them to set the key levels for the day.
| Level | Formula | Example: H = 110, L = 100, C = 108 |
|---|---|---|
| P | (H + L + C) ÷ 3 | 318 ÷ 3 = 106 |
| R1 | 2 × P - L | 212 - 100 = 112 |
| S1 | 2 × P - H | 212 - 110 = 102 |
| R2 | P + (H - L) | 106 + 10 = 116 |
| S2 | P - (H - L) | 106 - 10 = 96 |
| R3 | H + 2 × (P - L) | 110 + 12 = 122 |
| S3 | L - 2 × (H - P) | 100 - 8 = 92 |
R2 and S2 sit one full range of yesterday (H - L) away from the pivot. Sources differ on R3 and S3: the formula in the table is TradingView’s “Traditional” version, while its “Classic” version uses P ± 2 × (H - L), which gives 126 and 86 in the example. Sometimes the second or third level does not even appear on the day’s chart.
One trading day in 15-minute candles, with the levels calculated from yesterday (high 110, low 100, close 108). The price opens at 107.40, dips to 105.90, just below the pivot, then climbs to 111.80, below R1, and ends the day around 110.30.
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Create a free accountPivot point variants: Fibonacci, Camarilla and Woodie
Every variant starts from yesterday’s high, low and close, but the distances to the levels differ. Below, H - L is yesterday’s range.
| Variant | Pivot | Levels |
|---|---|---|
| Fibonacci | P = (H + L + C) ÷ 3 | R1, S1 = P ± 0.382 × (H - L); R2, S2 = P ± 0.618 × (H - L); R3, S3 = P ± (H - L) |
| Camarilla | P = (H + L + C) ÷ 3 | built from the close: R1, S1 = C ± 1.1 × (H - L) ÷ 12; R2, S2: ÷ 6; R3, S3: ÷ 4; R4, S4: ÷ 2 |
| Woodie | P = (H + L + 2 × O) ÷ 4, O = today’s open | R1 = 2 × P - L; S1 = 2 × P - H; R2, S2 = P ± (H - L) |
The formulas are those in TradingView’s documentation; the Fibonacci version is the same in StockCharts ChartSchool. Some sources calculate the Woodie pivot with yesterday’s close instead of today’s open, and Camarilla coefficients vary slightly between sources, so check what your platform uses.
How day traders use pivot points
On 1 to 15-minute charts, the levels come from yesterday and stay fixed all day. On 30 to 120-minute charts traders use last week’s prices, and on daily charts last month’s.
While the price holds above the pivot, the day is read as strong, and R1 is the first level to watch on the upside.
Below the pivot, the day is read as weak, and S1 is the first level to watch on the downside.
This is where many traders take profits or look for a turn. Watch what the price does rather than guessing.
Lessons are educational. They are not a recommendation to buy or sell. Investing involves risk and you can lose money. Sources: StockCharts ChartSchool (Pivot Points); TradingView, Pivot Points Standard indicator documentation (Fibonacci, Camarilla and Woodie formulas, R3 and S3), accessed 29 October 2026. The charts are teaching diagrams, not real prices.