Pivot Points

Pivot points are technical analysis indicators used to determine potential support and resistance levels. They are calculated from the previous period's high, low, and close prices. Originally developed by floor traders, pivot points provide a framework of key price levels where reversals or breakouts are likely to occur.

StratBase supports 5 pivot point calculation methods, each producing a central pivot (PP) and multiple support/resistance levels:

Classic (Standard)

The most widely used method. Calculated as:

PP = (High + Low + Close) / 3
S1 = 2 * PP - High
R1 = 2 * PP - Low
S2 = PP - (High - Low)
R2 = PP + (High - Low)
S3 = Low - 2 * (High - PP)
R3 = High + 2 * (PP - Low)

Fibonacci

Uses Fibonacci retracement levels applied to the pivot range:

PP = (High + Low + Close) / 3
S1 = PP - 0.382 * (High - Low)
R1 = PP + 0.382 * (High - Low)
S2 = PP - 0.618 * (High - Low)
R2 = PP + 0.618 * (High - Low)
S3 = PP - 1.000 * (High - Low)
R3 = PP + 1.000 * (High - Low)

Woodie

Gives more weight to the closing price:

PP = (High + Low + 2 * Close) / 4
S1 = 2 * PP - High
R1 = 2 * PP - Low
S2 = PP - (High - Low)
R2 = PP + (High - Low)

Camarilla

Designed for intraday trading with tighter levels:

PP = (High + Low + Close) / 3
S1 = Close - 1.1 * (High - Low) / 12
R1 = Close + 1.1 * (High - Low) / 12
S2 = Close - 1.1 * (High - Low) / 6
R2 = Close + 1.1 * (High - Low) / 6
S3 = Close - 1.1 * (High - Low) / 4
R3 = Close + 1.1 * (High - Low) / 4

DeMark

Adjusts calculation based on the relationship between open and close:

If Close < Open:  X = High + 2 * Low + Close
If Close > Open:  X = 2 * High + Low + Close
If Close = Open:  X = High + Low + 2 * Close

PP = X / 4
S1 = X / 2 - High
R1 = X / 2 - Low

Each pivot type provides PP, S1-S3, and R1-R3:

• PIVOT_CLASSIC_PP, PIVOT_CLASSIC_S1, PIVOT_CLASSIC_S2, PIVOT_CLASSIC_S3, PIVOT_CLASSIC_R1, PIVOT_CLASSIC_R2, PIVOT_CLASSIC_R3
• PIVOT_FIB_PP, PIVOT_FIB_S1, PIVOT_FIB_S2, PIVOT_FIB_S3, PIVOT_FIB_R1, PIVOT_FIB_R2, PIVOT_FIB_R3
• PIVOT_WOODIE_PP, PIVOT_WOODIE_S1, PIVOT_WOODIE_S2, PIVOT_WOODIE_R1, PIVOT_WOODIE_R2
• PIVOT_CAMARILLA_S1, PIVOT_CAMARILLA_S2, PIVOT_CAMARILLA_S3, PIVOT_CAMARILLA_R1, PIVOT_CAMARILLA_R2, PIVOT_CAMARILLA_R3

| Condition | Meaning | |-----------|---------| | close cross_over PIVOT_CLASSIC_PP | Price crosses above classic pivot — bullish bias | | close cross_under PIVOT_CLASSIC_S1 | Price breaks below first support — bearish | | close > PIVOT_FIB_R1 | Price above Fibonacci R1 — strong bullish momentum | | low > PIVOT_CLASSIC_PP | Price holding above pivot — uptrend intact |

• Pivot points are most effective on intraday timeframes (1m, 5m, 15m, 1h)
• The central pivot (PP) is the most important level — it acts as the primary support/resistance
• If price opens above PP, the bias is bullish; below PP, bearish
• S1/R1 are the most frequently tested levels
• S3/R3 are extreme levels — rarely reached, but powerful when hit
• Classic pivots are the most widely followed, making them self-fulfilling
• Camarilla pivots work well for range-bound scalping strategies
• Fibonacci pivots are popular among swing traders
• Combine pivot levels with other indicators (RSI, MACD) for confirmation
• Multiple pivot types aligning at the same price create strong confluence