This pivot variant gives the previous close more weight than the classic method. The pivot is the previous high plus the previous low plus twice the previous close, all divided by 4. The other levels follow the classic formulas from that pivot: R1 and S1 are twice the pivot less the previous low or high, R2 and S2 sit one full previous range above and below the pivot, and R3 and S3 extend twice the pivot's distance from the previous low or high beyond the previous high or low.
The period can be a day, a Monday-start week or a calendar month. The study folds the chart's own bars into those periods and, on the first bar of a new period, hands the completed one over. Every bar of a period reads the period before it, so the levels hold steady as step lines.
How to read Pivot Points (Woodie)
Because the close counts twice, the pivot sits nearer to where the previous period finished than the classic pivot does. Read it as the period's balance point, with R1 and S1 as the first areas of resistance and support and the outer levels as targets for a stronger move.
The weighting toward the close matters most after a period that closed near one end of its range. After a period that closed near its middle, the levels are almost the same as classic pivots.
Settings
- Pivot Timeframe
- The period the levels are built from: D uses the previous day, W the previous Monday-start week and M the previous calendar month. A longer period gives wider levels that stay in place for longer.
- Show Pivot Point
- Draw the central pivot line. Turning it off hides the line without changing any other level.
- Show R1
- Draw the first resistance level. Turning it off hides that line only.
- Show R2
- Draw the second resistance level. Turning it off hides that line only.
- Show R3
- Draw the third resistance level. Turning it off hides that line only.
- Show S1
- Draw the first support level. Turning it off hides that line only.
- Show S2
- Draw the second support level. Turning it off hides that line only.
- Show S3
- Draw the third support level. Turning it off hides that line only.
Frequently asked questions
How does this pivot differ from the classic one?
The classic pivot averages high, low and close equally. This one counts the close twice and divides by four, so the pivot and every level built from it lean toward where the previous period closed.
Do the levels move during the day?
No. Every bar of a period reads the period before it, which has already closed, so the lines are fixed for the whole period and step to new values when the next one begins.
Which calendar decides where a day or week starts?
The chart's own timezone. Days start at midnight, weeks start on Monday and months start on the first, all on that calendar, so a chart shown in a different timezone can group its bars into different periods.
