Analysis, not financial advice. Pivot levels are reference prices, not predictions.
Pivot points are one of the oldest tools in technical analysis. They take the previous period's high, low and close and turn them into a short ladder of prices above and below the market. Because they are calculated from public data with simple arithmetic, many traders watch the same levels, which is part of why they are popular.
There is not one pivot formula, though. There are at least five in common use, and they can put "support" in noticeably different places. This guide explains each method, works through the same example with all five, and covers when traders tend to prefer one over another. You can see all five calculated every hour for gold on our pivot points page. Our levels are calculated on an approximate spot price (delayed futures minus the measured gap between futures and spot), so they can differ from a broker's levels by a few dollars.
The inputs: high, low, close (and sometimes open)
Every method starts from the previous completed bar:
- H = the high of the previous period
- L = the low of the previous period
- C = the close of the previous period
- O = the open of the previous period, used only by DeMark (one Woodie variant uses the current period's open instead)
- Range = H minus L
"Period" can be an hour, a day or a week. Daily pivots for gold need one extra decision: when the day starts. Gold trades nearly around the clock on weekdays. The COMEX gold futures session runs from 6 PM to 5 PM Eastern Time, and our dashboard uses that day. Many MetaTrader 4 brokers set their server time so the daily candle closes at 5 PM New York time, while others close it at midnight Coordinated Universal Time. Two websites using different day boundaries will publish different daily pivots from the same market, which is a common reason levels do not match between sources.
The worked example
To compare methods fairly, we will use one made-up daily bar throughout:
- High 4,040, low 3,980, close 4,030, open 4,000
- Range = 60
The numbers are rounded to two decimal places.
Classic (floor trader) pivots
The classic pivot is the average of the high, low and close. Support and resistance are projected from it.
- Pivot (P) = (H + L + C) / 3
- Resistance 1 = 2 × P − L
- Support 1 = 2 × P − H
- Resistance 2 = P + Range
- Support 2 = P − Range
- Resistance 3 = H + 2 × (P − L)
- Support 3 = L − 2 × (H − P)
Example: P = 4,016.67; R1 = 4,053.33; S1 = 3,993.33; R2 = 4,076.67; S2 = 3,956.67; R3 = 4,113.33; S3 = 3,933.33.
Classic pivots are the most widely published set, which makes them the most widely watched. Not every platform has them built in: MetaTrader 4, for example, has no standard pivot indicator.
Fibonacci pivots
Fibonacci pivots use the same central pivot, then space the levels using fixed fractions of the range: 38.2 percent, 61.8 percent and 100 percent.
- Pivot = (H + L + C) / 3
- Resistance 1, 2, 3 = P + 0.382, 0.618 and 1.000 × Range
- Support 1, 2, 3 = P − 0.382, 0.618 and 1.000 × Range
Example: R1 = 4,039.59; R2 = 4,053.75; R3 = 4,076.67; S1 = 3,993.75; S2 = 3,979.59; S3 = 3,956.67.
The first levels sit closer to the pivot than the classic ones, and the third level equals the classic second level. Traders who already use Fibonacci retracements often like that the spacing follows the same ratios.
Camarilla pivots
Camarilla pivots are built around the close rather than the average price, and they are much tighter. Each level adds or subtracts a fraction of the range, multiplied by 1.1, from the close.
- Resistance 1 to 4 = C + Range × 1.1 / 12, / 6, / 4 and / 2
- Support 1 to 4 = C − Range × 1.1 / 12, / 6, / 4 and / 2
Example: R1 = 4,035.50; R2 = 4,041.00; R3 = 4,046.50; R4 = 4,063.00; S1 = 4,024.50; S2 = 4,019.00; S3 = 4,013.50; S4 = 3,997.00.
Because the inner levels hug the previous close, Camarilla levels are mostly used intraday. A common reading is that the third levels are areas where short-term moves often stall, and a sustained break through the fourth levels suggests a trending day rather than a ranging one. Our pivot points page shows Camarilla levels only to the third resistance and support, so the fourth levels in this example are for reference and do not appear there. Many platforms also display the classic pivot alongside Camarilla levels; our page does, which is why the pivot row is the same in the first three columns.
Woodie pivots
Woodie pivots give the close twice the weight of the high and the low, on the idea that where the market settled matters more than how far it travelled.
- Pivot = (H + L + 2 × C) / 4
- Resistance 1 = 2 × P − L
- Support 1 = 2 × P − H
- Resistance 2 = P + Range
- Support 2 = P − Range
- Resistance 3 = H + 2 × (P − L)
- Support 3 = L − 2 × (H − P)
Example: P = 4,020.00; R1 = 4,060.00; S1 = 4,000.00; R2 = 4,080.00; S2 = 3,960.00; R3 = 4,120.00; S3 = 3,940.00.
Some sources use the current period's opening price instead of the previous close in the pivot formula. Both versions circulate under the same name, so check which one a website uses before comparing numbers.
DeMark pivots
DeMark pivots change their formula depending on whether the previous bar closed up, down or unchanged. They produce only one support and one resistance.
First calculate X:
- If C is below O (a down bar): X = H + 2 × L + C
- If C is above O (an up bar): X = 2 × H + L + C
- If C equals O: X = H + L + 2 × C
Then:
- Pivot = X / 4
- Resistance 1 = X / 2 − L
- Support 1 = X / 2 − H
Example: the bar closed above its open, so X = 2 × 4,040 + 3,980 + 4,030 = 16,090. Pivot = 4,022.50; R1 = 4,065.00; S1 = 4,005.00.
Because the formula leans toward the direction of the previous bar, DeMark levels shift up after up bars and down after down bars. Traders typically use them as a projected range for the next period rather than a multi-step ladder.
Side-by-side summary
| Level | Classic | Fibonacci | Camarilla | Woodie | DeMark |
|---|---|---|---|---|---|
| Resistance 2 | 4,076.67 | 4,053.75 | 4,041.00 | 4,080.00 | n/a |
| Resistance 1 | 4,053.33 | 4,039.59 | 4,035.50 | 4,060.00 | 4,065.00 |
| Pivot | 4,016.67 | 4,016.67 | 4,016.67 (classic) | 4,020.00 | 4,022.50 |
| Support 1 | 3,993.33 | 3,993.75 | 4,024.50 | 4,000.00 | 4,005.00 |
| Support 2 | 3,956.67 | 3,979.59 | 4,019.00 | 3,960.00 | n/a |
Notice that Camarilla's first support (4,024.50) sits above the classic pivot. That is not an error: Camarilla levels centre on the close, and in this example the close was near the top of the day's range.
Which method should you use?
There is no method that is right in general. A few practical considerations:
- Popularity matters. Classic pivots are the most widely published set, so they may attract more attention.
- Match the method to the timeframe. Tight methods such as Camarilla are mostly used for intraday decisions. Wider methods are more often used on daily and weekly charts.
- Look for clusters. When levels from two or three methods, or from pivots and a moving average, fall close together, many traders treat that area as more significant. Our key levels page combines several sources for this reason.
- Mind the calendar. Levels calculated from a quiet day can be overrun in seconds by a major release. Check the economic calendar before relying on any level.
- Be consistent. Switching methods until one "worked" is hindsight, not analysis.
Frequently asked questions
Why do my pivot points differ from another website's?
The two most common reasons are a different day boundary (for example midnight Coordinated Universal Time against 5 PM in New York) and a different price source, such as futures against spot. Ours uses approximate spot calculated from delayed futures, so expect differences of a few dollars. Woodie pivots also have two versions in circulation.
Are pivot points support and resistance?
They are reference prices that many traders watch. Price sometimes reacts near them and sometimes moves straight through. Treat them as areas to pay attention to, not as barriers.
Which pivot timeframe should I use?
Hourly pivots suit very short-term trading, daily pivots suit trades held for hours, and weekly pivots suit trades held for days. Use the period that matches your holding time.
Do pivot points work for gold?
They can be calculated for any market with a high, low and close. Whether they help depends on how you use them. Test them against past data before relying on them.
Analysis, not financial advice. Poverty Sux does not manage money or recommend trades.
Not financial advice. This guide is general education about how technical tools and markets work. It does not consider your situation, and trading gold, especially with leverage, can lose more than you deposit. Read the disclaimer.