Pivot Points were originally developed and used by floor traders in order to define support and resistance levels based on the prices of the preceding time period.

The levels are usually calculated by using the High, Low and Close price of the preceding time period. The middle line (Pivot Point) is calculated by summing up these there values and dividing them by three. The other levels are calculated based on the Pivot Point. Other methods for calculation besides the Classic Pivot Points include Floor Pivot Points, Fibonacci Pivot Points etc.

Pivot Points do not need or have any reference points. They are drawn on the chart according to the chosen settings:

▫       Basis Date: The date that is used to define the first day of the calculation period. The Pivot Points object will be inserted on the chart starting with this date.

▫       Starting Time: The starting time for the calculation period. This is especially important for intraday (hourly) Pivot Points.

▫       Calculation Period: The time period that is used to retrieve the base values for the calculations. This can be set in hours, days, weeks or months. The Pivot Points are automatically moved to the start of next time period when one period ends. If you use 1-hour Pivot Points for example, they will be recalculated every hour.

You can also move a Pivot Points object on the chart by dragging it with the mouse. The basis date and starting time will then be adjusted accordingly.

You can change the calculation period and calculation method for the Pivot Points on its property sheet. In addition, you can choose which support / resistance levels are displayed, change the line style for the level lines, extend the lines to the right border of the chart and show / hide the labels and prices for each level. You can also use colored zones for each Pivot Points level. See Customizing Pivot Points. Pivot Points are automatically drawn behind other chart objects (in the background of the chart). See also Moving and Copying Drawing Objects.

To insert predefined Pivot Points

▪       Click on the arrow next to the Pivot Points icon on the Drawing toolbar:

▪       Choose a calculation period for the Pivot Points:

Hourly

Sets the calculation period to 4 hours

Daily

Sets the calculation period to 1 day

Weekly

Sets the calculation period to 1 week

Monthly

Sets the calculation period to 1 month

Custom

Opens the Insert Pivot Points dialog and lets you define custom settings

▪       The Pivot Points are drawn with the chosen calculation period. The basis date and starting time of the current period are determined automatically. The Pivot Points are calculated with the classic method.

To insert custom Pivot Points

▪       Click on the Pivot Points icon on the Drawing toolbar:

▪       In the Insert Pivot Points dialog, choose the Basis Date and Starting Time for the calculation.

▪       Choose the Calculation Period.

▪       Choose the Calculation Type.

▪       Click OK.

You can hide some of the Pivot Point levels, see Hiding and Showing Lines / Levels with Visibility Points.

Different Calculation Types

TeleTrader WorkStation offers the following calculation types for Pivot Points:

Classic Pivot Points

Resistance3 =       High + 2 x (Pivot - Low)

Resistance2 =       Pivot - Support1 + Resistance1

Middle4 =                (Resistance1 + Resistance2) / 2

Resistance1 =       2 x Pivot - Low

Middle3 =                (Pivot + Resistance1) / 2

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

Middle2 =                (Support1 + Pivot) / 2

Support1 =             2 x Pivot - High

Middle1 =                (Support1 + Support2) / 2

Support2 =             Pivot - Resistance1 + Support1

Support3 =             Low - 2 x (High - Pivot)

Floor Pivot Points

Resistance3 =       High + 2 x (Pivot - Low)

Resistance2 =       Pivot + High - Low

Resistance1 =       2 x Pivot - Low

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

Support1 =             2 x Pivot - High

Support2 =             Pivot - High + Low

Support3 =             Low - 2 x (High - Pivot)

Woodie’s Pivot Points

Resistance2 =       Pivot + High - Low

Resistance1 =       2 x Pivot - Low

Pivot Point =          (High + Low + 2 x Close) / 4

Support1 =             2 x Pivot - High

Support2 =             Pivot - High + Low

Camarilla Pivot Points

Resistance4 =       (High - Low) x 1,1 / 2 + Close

Resistance3 =       (High - Low) x 1,1 / 4 + Close

Resistance2 =       (High - Low) x 1,1 / 6 + Close

Resistance1 =       (High - Low) x 1,1 / 12 + Close

Support1 =             Close - (High - Low) x 1,1 / 12

Support2 =             Close - (High - Low) x 1,1 / 6

Support3 =             Close - (High - Low) x 1,1 / 4

Support4 =             Close - (High - Low) x 1,1 / 2

Fibonacci Pivot Points

Resistance4 =       Pivot + 1,000 x (High - Low)

Resistance3 =       Pivot + 0,764 x (High - Low)

Resistance2 =       Pivot + 0,618 x (High - Low)

Resistance1 =       Pivot + 0,382 x (High - Low)

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

Support1 =             Pivot - 0,382 x (High - Low)

Support2 =             Pivot - 0,618 x (High - Low)

Support3 =             Pivot - 0,764 x (High - Low)

Support4 =             Pivot - 1,000 x (High - Low)