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Glossary term

Pivot points

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Also called: pivot points, daily pivot, pivot point formula.

Pivot points are fixed price levels on charts. They use the last trading day's high, low and close. High is that day's highest price. Low is its lowest price. Close is its final price. P is the middle level. R1 and R2 sit above it. S1 and S2 sit below it. R means resistance, where a rise may pause. S means support, where a fall may pause. The lines stay fixed all day. On Monday, they usually use Friday's prices.

Pivot points formula

Use the last full trading day's high H, low L and close C. P = (H + L + C) / 3. R1 = 2 x P - L. S1 = 2 x P - H. R2 = P + (H - L). S2 = P - (H - L). These are the traditional daily formulas.

How it is read

Take H = 24,120, L = 23,940 and C = 24,030. P is 24,030. R1 is 24,120 and R2 is 24,210. S1 is 23,940 and S2 is 23,850. Changing today's price does not change these numbers. On the practice desk, open Indicators and turn on Pivot points. Today's slate lines start at 09:15. Faint earlier lines belong to their own days. The numbers stay the same when you change candle intervals.

What it does not tell you

A line is a place to study price, not a promise of a turn. Price can cross every level and keep going. The formulas use past prices. They do not predict the next move. A line touch alone is not a reason to buy or sell. These index levels do not include an option's premium, time decay, spread or charges. The desk draws no levels when the earlier full day is missing. Missing data is never a zero price.

Support and Resistance

Definition →

Breakout

Definition →
Reference. LearnNifty desk calculation conventions and worked arithmetic examples..

Watch candles on the practice desk

Open the NIFTY and BANKNIFTY practice desk. Compare the chart with the idea explained here.

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