One formula, three or four lines on your chart, and half the day's turning points marked before the open.
“A pivot level is a place to pay attention, not a place to assume the trade holds.”Jason Parker · Founder
Pivot points get calculated once before the session opens, from the prior day's high, low, and close, then they sit on the chart untouched until the next day's numbers replace them. The center pivot plus a stack of support and resistance levels above and below it gives you a rough map of where the day is likely to turn, before a single candle has printed. The first touch of any of these levels is a decision point: bounce off it, or push through it.
| Entry | On the bounce, a rejection candle at the level back toward the pivot; on the break, a close through the level with volume behind it |
| Exit | The next pivot level in either direction, since that's the next spot the crowd watching these levels is likely to react |
| Stop | Just past the level being traded, on the side that would prove the read wrong |
An illustrative example built to show the setup’s shape. Not historical price data, and not tied to any specific ticker.
Treating the first touch of a pivot level as if it's guaranteed to hold. It isn't a support or resistance level anyone drew off a chart pattern, it's a number from a formula, and plenty of days blow through R1 and R2 without slowing at either one. Treat it as a place to pay attention, not a place to assume the trade.
None of this works without the framework underneath it. Read risk management next, or run your own numbers in the position-size calculator.
Common questions about trading this setup, answered straight.
On the bounce, entry comes on a rejection candle at the level back toward the pivot. On the break, entry comes on a close through the level with volume behind it.
The stop sits just past the level being traded, on the side that would prove the read wrong. The target is the next pivot level in either direction, since that's the next spot the crowd watching these levels is likely to react.
Treating the first touch of a pivot level as guaranteed to hold. It's a number from a formula, not a support or resistance level anyone drew off a chart pattern, and plenty of days blow through R1 and R2 without slowing at either one.
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