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Home | Day Trading Articles | Pivot Point Calculator
 


Pivot Point Calculator

How To Make Your Pivot Point Calculator

Now that I have my key levels from the previous article on Pivot Chart, I want to figure out the key pivot points from my pivot point calculator that I'll be using for Monday, March 21. The first thing I do is take these high/low/close figures and plug them into the formula of my pivot point calculator. To figure out the daily pivot, I take the high + low + close and divide by 3. 10679 + 10579 + 10635 = 31,893/3 = 10631. We now have our pivot point for the day, the basis of our pivot point calculator. To figure out R1, which is the next level above the pivot, I multiply the pivot by 2, and then subtract the low. So we take 10631 x 2 = 21,262 -- the low at 10579 = 10683. We complete this process until we are done.

Pivot Point Calculator Levels

  • R3: 10783
  • R2: 10731
  • R1: 10683
  • Pivot: 10631
  • S1: 10583
  • S2: 10531
  • S3: 10483
Once I have these levels, I place them on my pivot point chart. I also like to note the midpoints between the daily pivot levels. This pivot point calculator is very simple as it are literally the "midpoint." The pivot is 10631 and R1 is 10683, 52 points away. Half of 52 is 26. I add that to the pivot and I get a midpoint of 10657. These are all pivot point calculator formulas that can be setup in excel, making this a very quick and easy process. I don't calculate the midpoints for the weekly and monthly levels.

With the chart created with the help of the pivot point calculator and the appropriate pivot levels added, the first thing I will note is where the daily pivot is in relation to where the market closed. The daily pivot is at 10631 and the market closed at 10635. The second thing I will be watching for is where the markets are trading at 9:30 a.m. Easter on Monday. How far away is it from the daily pivot? This will work in relation to the gap play. The markets test their daily pivot level 90% of the time at some point during the day. I will always fade the first move to the daily pivot.



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