Pivot points are precomputed support and resistance levels derived from the prior session's OHLC. Day-traders use them as market-wide reaction zones.
When to use it
Intraday - set them at the start of the session and watch for reactions at S1/R1, S2/R2, etc.
Formula
Standard Pivot = (High + Low + Close) / 3. R1 = 2P − Low, S1 = 2P − High. Higher levels extend the same logic.
Worked example
Yesterday's H/L/C = 1.0900 / 1.0820 / 1.0860 → P = 1.0860, R1 = 1.0900, S1 = 1.0820.
Which pivot type is best?
Standard pivots are the most-watched (self-fulfilling). Camarilla emphasises mean-reversion. Fibonacci-based ones cluster near classic Fib retracements.