How pivot points are calculated
P = (High + Low + Close) ÷ 3 · R1 = 2P − Low · S1 = 2P − High
- Classic – the original floor-trader levels.
- Fibonacci – adds 38.2%, 61.8% and 100% of the range to the pivot.
- Camarilla – tight levels around the close, popular for intraday reversals.
- Woodie – gives the close more weight: P = (H + L + 2C) ÷ 4.
How traders use them
Price above the pivot is often read as a bullish bias, below it as bearish. R1/S1 and R2/S2 act as potential turning points or targets. For daily pivots use yesterday’s values. For weekly pivots use last week’s high, low and close.
Frequently asked questions
Which time zone close should I use?
Most forex traders use the New York 5 pm close, which matches the daily candle on most brokers.
Which pivot method is best?
None is best for every market. Classic levels are the most widely watched. Camarilla suits intraday range trading.