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# Pivot Points Level [TradingFinder] 4 Methods + Reversal lines

🔵Introduction

"Pivot Points" are places on the price chart where buyers and sellers are most active. Pivot points are calculated based on the previous day's price data and serve as reference points for traders to make decisions.

Types of Pivot Points:
• Floor
• Woodie
• Camarilla
• Fibonacci

🟣Floor Pivot Points

Floor pivot points are widely used in technical analysis. The central pivot point (PP) serves as the main level of support or resistance, indicating the potential direction of the trend.

The first to third levels of resistance (R1, R2, R3) and support (S1, S2, S3) provide additional signals for potential trend reversals or continuations.

Floor Pivot Points Formula:

• Pivot Point (PP): (H + L + C) / 3
• First Resistance (R1): (2 * P) - L
• Second Resistance (R2): P + H - L
• Third Resistance (R3): H + 2 * (P - L)
• First Support (S1): (2 * P) - H
• Second Support (S2): P - H + L
• Third Support (S3): L - 2 * (H - P)

🟣Camarilla Pivot Points

Camarilla pivot points include eight levels that closely align with support and resistance. These points are particularly useful for setting stop-loss and profit targets.

Camarilla Pivot Points Formula:

• Fourth Resistance (R4): (H - L) * 1.1 / 2 + C
• Third Resistance (R3): (H - L) * 1.1 / 4 + C
• Second Resistance (R2): (H - L) * 1.1 / 6 + C
• First Resistance (R1): (H - L) * 1.1 / 12 + C
• First Support (S1): C - (H - L) * 1.1 / 12
• Second Support (S2): C - (H - L) * 1.1 / 6
• Third Support (S3): C - (H - L) * 1.1 / 4
• Fourth Support (S4): C - (H - L) * 1.1 / 2

🟣Woodie Pivot Points

Woodie pivot points are similar to floor pivot points but place more emphasis on the closing price. This method often results in different pivot levels than the floor method.

Woodie Pivot Points Formula:

• Pivot Point (PP): (H + L + 2 * C) / 4
• First Resistance (R1): (2 * P) - L
• Second Resistance (R2): P + H - L
• First Support (S1): (2 * P) - H
• Second Support (S2): P - H + L

🟣Fibonacci Pivot Points

Fibonacci pivot points use the standard floor pivot points and then apply Fibonacci retracement levels to the range of the previous trading period. The common retracement levels used are 38.2%, 61.8%, and 100%.

Fibonacci Pivot Points Formula:

• Pivot Point (PP): (H + L + C) / 3
• Third Resistance (R3): PP + ((H - L) * 1.000)
• Second Resistance (R2): PP + ((H - L) * 0.618)
• First Resistance (R1): PP + ((H - L) * 0.382)
• First Support (S1): PP - ((H - L) * 0.382)
• Second Support (S2): PP - ((H - L) * 0.618)
• Third Support (S3): PP - ((H - L) * 1.000)

🔵How to Use

🟣Two Methods for Trading Pivot Points

There are two primary methods for trading pivot points: trading with "pivot point breakouts" and trading with "price reversals."

🟣Pivot Point Breakout

A breakout through pivot lines provides a significant signal to the trader, indicating a change in market sentiment. When an upward breakout occurs and the price crosses these lines, a trader can enter a long position and place their stop-loss below the pivot point (P).

Similarly, if a downward breakout happens, a short order can be placed below the pivot point.
When trading with pivot point breakouts, if the upward trend breaks, the first and second support levels can be the trader's profit targets. In a downward trend, the first and second resistance levels will serve this role.

🟣Price Reversal

Another method for trading pivot points is waiting for the price to reverse from the support and resistance levels. To execute this strategy, one should trade in the opposite direction of the trend as the price reverses from the pivot point.

It's worth noting that although traders use this tool in higher time frames, it yields better results in shorter time frames such as one-hour, 30-minute, and 15-minute intervals.