While the standard pivot point formula is the most commonly used, it’s not the only way to calculate pivot levels.
Just like there’s more to K-pop than BTS, there are more ways to calculate pivot points than just the traditional method. Over time, traders have developed alternative techniques to improve accuracy and adapt to different market conditions.
Let’s break down three popular alternatives: Woodie, Camarilla, and Fibonacci pivot points.
🔸 1. Woodie Pivot Points
Formula:
- Pivot Point (PP) = (High + Low + 2 × Close) ÷ 4
- Resistance 1 (R1) = (2 × PP) – Low
- Resistance 2 (R2) = PP + (High – Low)
- Support 1 (S1) = (2 × PP) – High
- Support 2 (S2) = PP – (High – Low)
📌 Key Insight: Woodie’s method places more emphasis on the closing price, making it more sensitive to recent price action.
Why traders use it:
It’s great for fast-moving markets where the most recent price action holds more weight than past highs/lows.
🔸 2. Camarilla Pivot Points
Formula:
- Pivot Point (PP) = (High + Low + Close) ÷ 3
- Resistance Levels:
- R1 = Close + (High – Low) × 1.0833
- R2 = Close + (High – Low) × 1.1666
- R3 = Close + (High – Low) × 1.2500
- R4 = Close + (High – Low) × 1.5000
- Support Levels:
- S1 = Close – (High – Low) × 1.0833
- S2 = Close – (High – Low) × 1.1666
- S3 = Close – (High – Low) × 1.2500
- S4 = Close – (High – Low) × 1.5000
📌 Key Insight: Camarilla levels focus on mean reversion, assuming that prices tend to return to the previous day’s close.
How it’s used:
Buy near S3 or sell near R3 for reversals. A break beyond S4 or R4 suggests a strong trend — perfect for breakout entries.
🔸 3. Fibonacci Pivot Points
Formula:
- Pivot Point (PP) = (High + Low + Close) ÷ 3
- Resistance Levels:
- R1 = PP + (High – Low) × 0.382
- R2 = PP + (High – Low) × 0.618
- R3 = PP + (High – Low) × 1.000
- Support Levels:
- S1 = PP – (High – Low) × 0.382
- S2 = PP – (High – Low) × 0.618
- S3 = PP – (High – Low) × 1.000
📌 Key Insight: Combines pivot point logic with Fibonacci ratios, making it a favorite among traders who already use Fibonacci retracements.
Best for:
Spotting support and resistance zones with a blend of mathematical precision and crowd psychology.
🧠 So…Which Pivot Point Method Is Best?
There’s no one-size-fits-all. Each method has its strengths depending on your trading style and the market’s behavior.
- Want more recent data influence? Go with Woodie.
- Prefer intraday mean reversals? Try Camarilla.
- Fan of Fibonacci? Stick with the Fibonacci method.
Most platforms use the standard formula by default, but now that you know the others — test them out and see what aligns best with your strategy.
Pivot like a pro!
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