📊 Lesson 3.4 – S/R Pivot Points

“Let the math do the work. Pivot points offer calculated guidance for market entries and exits.”

🎯 Lesson Objective

Learn how to calculate and use Pivot Points – mathematically derived price levels that help identify support and resistance (S/R) zones with objectivity and clarity.

📐 What Are Pivot Points?

Pivot Points are pre-calculated price levels based on the previous period’s high, low, and close. These levels help traders forecast potential support and resistance zones.

🧮 Pivot Point Formula

Once the Pivot Point (P) is calculated, the support and resistance levels are:

• R1 = (2 x P) – Low

• R2 = P + (High – Low)

• R3 = High + 2(P – Low)

• S1 = (2 x P) – High

• S2 = P – (High – Low)

• S3 = Low – 2(High – P)

📆 Time Frames Used

Note: H = High, L = Low, C = Close

📲 How to Access Pivot Points?

• Most chart platforms (like TradingView) offer built-in Pivot Point indicators.

• MT4/MT5 users can download free custom indicators for daily/monthly pivots.

• Keep in mind: Daily pivot levels may differ slightly depending on your chart time zone (GMT vs EST).

🧠 How Traders Use Pivot Points

There are 7 key pivot levels:

📌 Traders look for:

• Price bouncing at S1, S2, or S3 → support confirmation

• Price failing to rise past R1, R2, or R3 → resistance confirmation

📈 Best Practices

✅ Use Pivot Points as confirmation, not standalone signals
✅ Combine with trendlines, moving averages, and S/R zones
✅ Watch for price reactions near Pivot, R1/S1 – great for entries/exits
✅ Be mindful of false breakouts around these areas

🗒️ Instructor Notes

Pivot Points provide objectivity and structure. Every trader (theoretically) sees the same levels. That’s powerful.
Use them to enhance your S/R decisions, not replace them.