Description
Pivot Points is a study whose purpose is to provide three key support and resistance levels using daily, weekly, or monthly timeframes.
Support and resistance levels are found in relation to the pivot point which is the average of High, Low, and Close prices of the previous period. See the following table explaining calculation of support and resistance levels.
| Order | Resistance Level | Support Level |
|---|---|---|
| First | Above the pivot point, at the distance equal to that between the pivot point and the Low price of the previous period. | Below the pivot point, at the distance equal to that between the pivot point and the High price of the previous period. |
| Second | Above the pivot point, at the distance equal to the trading range of the previous period. | Below the pivot point, at the distance equal to the trading range of the previous period. |
| Third | Above the second resistance level, at the distance equal to the trading range of the previous period. | Below the second support level, at the distance equal to the trading range of the previous period. |
Compared to Persons Pivots, Pivot Points uses different determination of weekly and monthly timeframes. In Persons Pivots, the last complete time period (week or month) is taken to calculate the levels, while Pivot Points counts these periods back from the last day, so in the latter case, pivot levels are different each day.
Input Parameters
| Parameter | Description |
|---|---|
show only today
|
Defines whether to display plots for the whole chart or for the last day only. |
time frame
|
The time frame used to calculate the pivot points. |
Plots
| Plot | Description |
|---|---|
R3
|
The third resistance level. |
R2
|
The second resistance level. |
R1
|
The first resistance level. |
PP
|
The pivot point. |
S1
|
The first support level. |
S2
|
The second support level. |
S3
|
The third support level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.