Pivot point trading: levels first, then confirmation.
Pivots turn the market into a map: PP (pivot), R1/R2 (resistance), S1/S2 (support). Use them to plan clean trades around levels — and avoid random entries.
What are pivot points?
Pivot points are calculated price levels based on the prior period’s high/low/close. Traders use them as objective support/resistance zones to plan entries, targets, and stops.
The central reference level. Often acts as a magnet or decision point.
Resistance zones. Common areas for breakouts, rejections, or target-taking.
Support zones. Common areas for bounces, breakdowns, or profit targets.
How to use pivots (simple playbook)
Breakout approach
- • Identify a pivot level (PP/R1/S1) that price is pressing
- • Wait for confirmation beyond the level (close-based)
- • Target the next pivot zone (example: PP → R1)
- • Place stop where the breakout is invalidated
Reversal approach
- • Look for exhaustion into a pivot zone (R1/R2 or S1/S2)
- • Require confirmation (avoid “catching knives”)
- • Target mean reversion back to PP or the next level
- • Use cooldown behavior to avoid chop
Pivot points FAQ
Which timeframe pivots are best?
Daily pivots are popular for intraday planning. Weekly pivots help with swing context. Use the timeframe that matches your holding period.
Do pivots work on Gold (XAUUSD)?
Many traders use pivots on Gold because it often reacts sharply around key levels. Confirmation helps reduce false moves.
Trade levels with discipline.
Build your plan around pivots, then wait for confirmation. If you want structured alerts that support this workflow, start risk-free.