What are pivot points?
Pivot points are price levels calculated from the previous period's high, low and close. The middle level is called the pivot. Below it are three support levels (S1–S3), above it three resistance levels (R1–R3). Many traders use them as fixed reference points.
The levels stay fixed for the whole period — the price moves between them.
How they are calculated
The classic method uses the previous period's figures: pivot = (high + low + close) / 3. R1 = 2 × pivot − low, and S1 = 2 × pivot − high. R2 and S2 sit one full period range above and below the pivot. Other methods — Fibonacci, Camarilla, Woodie's and DeMark's — place the levels slightly differently.
How to read them
- Above the pivot is often read as strength in the new period, below the pivot as weakness.
- S1 and R1 are the nearest levels and are reached most often.
- S3 and R3 are only reached in unusually large moves.
Because many people use the same formulas, lots of orders often sit around the levels — which is why the price often reacts when it gets there. That makes them partly self-fulfilling.
The time frame matters
Daily pivot points are mostly used by people trading within the day. If you invest over months and years, the weekly or monthly pivot points are more relevant than the daily ones — or you can skip them altogether.
The typical beginner's mistake
Using daily pivot points for an investment you plan to hold for years. They are built for trading within the day and change every day.
How you see it in Kiggo
Open a stock and tap “Go deeper into technical analysis”. The “Pivot points” card shows S3 to R3 with five methods: classic, Fibonacci, Camarilla, Woodie's and DeMark's. Change the time frame with the tabs at the top — on “Week” and “Month” the levels are worked out from the previous week or month. Tap a method to see the formula.
Related terms
Frequently asked questions
Which method is best?
None is best in itself. The classic one is the most widely used, which is why its levels are often the ones the price reacts to most clearly.
What is the difference between pivot points and support and resistance?
Support and resistance are found by looking at where the price has turned before. Pivot points are calculated with a formula from the previous period. The two kinds of level are often close to each other.
Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated .
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
