Pivot Points fall under support and resistance category of indicators. A support will not let the stock fall further and a resistance will not let the stock to rise further. Pivot Points use the prior period’s high, low and close to estimate future support and resistance levels.
Pivot Points for 1-, 5-, 10- and 15-minute charts use the prior day’s high, low and close
Pivot Points for 30-, 60- and 120-minute charts use the prior week’s high, low, and close
Pivot Points for daily charts use the prior month’s data
Pivot Points for Weekly/ Monthly charts use the prior year’s data
Pivot Point (P) = (High + Low + Close)/3 Support 1 (S1) = (P x 2) - High Support 2 (S2) = P - (High - Low) Support 3 (S3) = Low – 2(High – PP) Resistance 1 (R1) = (P x 2) - Low Resistance 2 (R2) = P + (High - Low) Resistance 3 (R3) = High + 2(PP – Low)