Definition. Levels calculated from the previous period's high, low and close, traditionally used by floor traders as reference points for the next day.
How it works
In the classic version, the central pivot P is the average of the high, low and close. The first resistance R1 = 2P − low, the first support S1 = 2P − high. Further levels are calculated similarly.
Example
Many participants see the same levels, because they're calculated from the same data using a simple formula.
What to watch out for
The result depends on whether they're calculated from the regular session or the full 24 hours. They're reference points, not levels that must work.
You'll find the full explanation with graphics, examples and exercises in the 🖥️ Order flow atlas space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).
