Pivot Points
a.k.a. Pivots, Floor pivots
Price levels calculated from the previous period's high, low and close, used as likely support and resistance for today.
Pivot points are a set of lines worked out from simple maths on yesterday's prices. The central pivot is the average of the previous high, low and close. From there you calculate support levels below (S1, S2, S3) and resistance levels above (R1, R2, R3).
They started with floor traders who wanted quick reference levels without charts. Because so many traders still watch the same numbers, price often reacts around them: if it holds above the pivot, the mood leans bullish for the session; below, bearish.
Working out the daily pivot
- Yesterday's high: 1.1100. Low: 1.1000. Close: 1.1060.
- Pivot = (1.1100 + 1.1000 + 1.1060) ÷ 3 = 1.1053.
- R1 = (2 × 1.1053) − 1.1000 = 1.1106. S1 = (2 × 1.1053) − 1.1100 = 1.1006.
Bottom line: Today's map: pivot near 1.1053, first resistance around 1.1106, first support around 1.1006.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.