What Are Pivot Points?
Pivot Points are calculated levels based on the previous day's high, low, and close. They help traders identify potential reversal zones and breakout continuation areas.
Where to Trade Gold (XAUUSD) Safely
This dashboard helps you analyze the market, but execution quality depends on the broker you use. Choose brokers with low spreads, fast execution, and proper regulation.
One broker widely used by professional traders for Gold trading is Exness.
👉 Open an Exness trading account
⚠️ Risk disclaimer: Trading involves risk. This content is for educational purposes only and does not constitute financial advice.
Pivot Calculation Formula
- PP = (High + Low + Close) / 3
- R1 = 2 × PP – Low
- S1 = 2 × PP – High
- R2 = PP + (High – Low)
- S2 = PP – (High – Low)
- R3 = High + 2 × (PP – Low)
- S3 = Low – 2 × (High – PP)
How to Use Pivot Points
- PP acts as the intraday equilibrium level
- S1 / R1 are common bounce areas
- S2 / R2 often indicate trend continuation
- S3 / R3 signal extreme volatility
Best Trading Tips
- Always align Pivot Points with the main trend
- Look for rejection candles near PP, S1, or R1
- Avoid counter-trend trades without confirmation
- Strong breaks beyond R2/S2 often extend further
Risk Notice
Pivot Points are analytical tools, not guarantees. Always combine them with price action and disciplined risk management.
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