Four Pivot-Point Formulas and Alternate Support and Resistance Levels

Summary

This note describes a pivot-point indicator that adds four ways to calculate the central pivot from the previous session’s high, low, and close, with some variants also incorporating the current open or giving the previous close additional weight. These alternative averages let users compare different reference levels when deriving pivot support and resistance lines.

It also offers an alternate method for calculating support and resistance, specifically addressing versions where the third resistance and support levels differ from the original approach and produce tighter levels. The note does not provide the full formulas for those bands, explain which variant is preferable, or present tests across markets or time periods. It documents calculation choices for an indicator, not evidence that any pivot variant forecasts price movement or improves trading results.

Key ideas

• The indicator offers four formulas for calculating the central pivot from prior-session prices and, in some variants, the current open.
• An alternate support and resistance calculation is available for users who want different third-level bands.
• The note says some implementations produce tighter third support and resistance levels than the original approach.
• No comparative tests establish which calculation method performs better.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.