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.

▪ 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.

▪ 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) |