What are pivot points? The classic formula in plain English
By SendPay Business · · 2 min read
Pivot points are price levels worked out from the previous period's high, low and close. They began with floor traders on exchanges and are still widely shown on forex and futures charts.
The classic formula
- Pivot (P) = (high + low + close) ÷ 3.
- First resistance R1 = 2P − low; first support S1 = 2P − high.
- R2 = P + (high − low); S2 = P − (high − low).
- R3 = high + 2(P − low); S3 = low − 2(high − P).
How people use them
Daily pivots use yesterday's figures to set levels for today; weekly and monthly pivots work the same way over longer periods. Some read price above the pivot as a stronger day and below it as a weaker one, and watch the support and resistance levels as places where moves may pause.
The limits
Pivot points are simple arithmetic on past prices. There are other versions, such as Fibonacci and Camarilla pivots, that give different levels, and no version predicts where a price will turn.
Where SendPay fits
SendPay doesn't offer trading. SendPay platforms let your customers hold GBP, EUR and USD and exchange between them at a fee you set, alongside transfers and branded Visa cards, powered by licensed partners.
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How do I work out pivot points?
Enter yesterday's high, low and close into the free calculator.
Pivot point calculator →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.