Pivot Points (PP) is a widely used technical indicator that calculates and plots key support and resistance levels based on the previous day’s price action. It centers on a pivot point — the primary reference level — and derives symmetrical, equidistant support and resistance lines above and below it.
Typically, the Pivot Points indicator uses the prior trading day’s high, low, and closing prices to compute these levels using standardized formulas. The resulting levels — S1, S2, S3 (support) and R1, R2, R3 (resistance) — help traders anticipate potential reversal or breakout zones.
ForTraders.org Comment: The Pivot Points indicator should never be used in isolation. Always confirm signals with additional tools — such as trend-following indicators, volume analysis, or candlestick patterns — before entering a trade. Pivot levels can serve as entry triggers for breakouts or bounces, depending on your trading strategy.
Download the Pivot Points indicator
FAQ
What are Pivot Points in forex trading?
Pivot Points are calculated levels — including a central pivot (PP), three support (S1–S3), and three resistance (R1–R3) levels — derived from the previous day’s open, high, low, and close. They help identify potential turning points.
How accurate are Pivot Points for intraday trading?
They’re most reliable on major currency pairs during London and New York sessions. Accuracy improves when combined with price action confirmation (e.g., pin bars at R1/S1) or momentum filters like RSI.
Can Pivot Points be used on timeframes other than daily?
Yes — weekly and monthly pivots exist for longer-term analysis, and some traders adapt the formula for 4-hour or hourly charts, though daily remains the standard and most validated setting.
