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What are Pivot points, how are they calculated, and how to use them for support-resistance in intraday trading — complete Hindi guide.
Published by The Retail Trader · AUG 13, 2026 · Features
What are Pivot points, how are they calculated, and how to use them for support-resistance in intraday trading — complete Hindi guide.
Pivot Points are a mathematical formula that is calculated from the previous day's High, Low, and Close, and predicts potential support/resistance levels for today. This is an extremely popular tool for intraday traders because it gives objective, calculated levels — not subjective chart reading.
Many institutional traders and floor traders have been using pivot points for decades — so these levels act like a self-fulfilling prophecy (many logs are seeing the same levels, so there is actual buying/selling activity).
Keep these nine points in mind:
• Pivot Point (PP) = (High + Low + Close) / 3
• Resistance 1 (R1) = (2 × PP) - Low
• Resistance 2 (R2) = PP + (High - Low)
• Resistance 3 (R3) = High + 2 × (PP - Low)
• Support 1 (S1) = (2 × PP) - High
• Support 2 (S2) = PP - (High - Low)
• Support 3 (S3) = Low - 2 × (High - PP)
High, Low, Close = values of previous trading day
In simple language: Pivot Point is "today's fair value center". R1, R2, R3 are the above resistance zones. S1, S2, S3 are the support zones below.
Keep these four points in mind:
• Price > Pivot Point — Bullish bias for today
• Price < Pivot Point — Bearish bias for today
• Price near R1/R2/R3 — Resistance zone, profit booking possible
• Price near S1/S2/S3 — Support zone, bounce possible
Setup:
• Price approaches S1 or S2 level
• Reversal candle patterns are formed (hammer, doji)
Entry: After Confirmation candle Stop Loss: Slightly below the Support level Target: Pivot Point or R1
Reverse for resistance: Price rejects near R1/R2 → SELL, target S1 or Pivot.
Setup:
• Price breaks R1 or S1 with strong volume
Entry: Breakout candle close confirmed Stop Loss: On the other side of Broken level Target: Next pivot level (R2 or S2)
At the beginning of the day, see if the price opened above or below the Pivot Point:
Keep these three points in mind:
• Open is above, price remains above PP — Bullish — buy dips
• Open is below, price remains below PP — Bearish — sell rallies
• Price repeatedly crosses PP — Choppy/sideways — avoid strong directional trades
The above formula — the most widely used.
Fibonacci ratios are calculated using (38.2%, 61.8%, 100%). Gives more precise levels because they align with Fibonacci retracement.
Keep these three points in mind:
• R1 = PP + 0.382 × (High - Low)
• R2 = PP + 0.618 × (High - Low)
• R3 = PP + 1.000 × (High - Low)
More levels (R1-R4, S1-S4), tighter range — popular for scalpers.
Keep these two points in mind:
• R4 = Close + (High - Low) × 1.1/2
• R3 = Close + (High - Low) × 1.1/4
The current day's open price is given more weight in the calculation.
For Beginners: Start with Standard Pivot Points — the simplest and most widely tracked, so have the most institutional relevance.
Keep these three points in mind:
• Intraday/Scalping — Daily Pivot Points (previous day's data)
• Swing Trading — Weekly Pivot Points
• Positional — Monthly Pivot Points
Keep these four points in mind:
• Objectivity — Pivot Points: ✅ Mathematical, no bias, Manual Support-Resistance: Subjective, chart-reading based
• Calculation — Pivot Points: Automatic formula, Manual Support-Resistance: Manual identification
• Widely tracked — Pivot Points: ✅ Yes (institutional use), Manual Support-Resistance: Depends on trader
• Adapts to news/gaps — Pivot Points: Slower (previous day data), Manual Support-Resistance: Real-time adjustable
Best approach: Combine both. Pivot points provide automatic reference levels, manual S/R analysis confirms/refines them.
R3/S3 rarely touch — very extreme moves are required. R1/S1 and Pivot Point are most relevant for daily trading.
Pivot points are less reliable on days with large gaps because the calculation is based on the previous day's data, which gets disconnected with the gap.
Pivot level touch is not enough — volume confirmation is necessary for reversal/breakout.
Pivot points are a tool, not a complete strategy. Combine with candlestick patterns, volume, and overall trend.
Keep these points in mind:
• 📌 PIVOT POINTS QUICK REFERENCE
• Levels (Top to Bottom):
• R3 → R2 → R1 → Pivot Point → S1 → S2 → S3
• BUY Signals:
• ✅ Price bounces from S1/S2 with confirmation
• ✅ Price breaks R1 with volume (breakout)
• SELL Signals:
• ❌ Price rejects at R1/R2 with confirmation
• ❌ Price breaks S1 with volume (breakdown)
• DAILY BIAS:
• 🔥 Price > Pivot at open → Bullish day
• 🔥 Price < Pivot at open → Bearish day
• AVOID:
• ⚠️ Blind trust on gap-up/gap-down days
• ⚠️ Trading R3/S3 as primary levels
• ⚠️ Ignoring volume confirmation
Keep these five points in mind:
• Go to /charting
• Select a stock
• Search for "Pivot Points" in Indicators
• Select Standard, Fibonacci, or Camarilla type
• All R1-R3, S1-S3 levels will be auto-plotted on the chart.
Pro tip: Combine Pivot points with VWAP for intraday trading — both together show strong confluence zones.
Keep these three points in mind:
• How to Identify Support and Resistance?
• VWAP Indicator: Best Friend of Intraday Trading
• Fibonacci Retracement: Step-by-Step Guide
This article is educational analysis — not investment advice. Do your own research, manage your own risk.
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.