# 3 Pivot Points

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We need to know that apparently there are several types of pivot points and that we have discussed before are standard pivot points. And what distinguishes the pivot point from one another is how to get the level value (the difference in a formula). For more details, please refer to the following types of pivot points.

### Woodie Pivot Point

Using the calculation formula as follows:

#### Pivot Point Calculation Formula

PP = (H + L + 2C) / 4

#### First Resistance and Support

R1 = (2 X PP) – Low
S1 = (2 X PP) – High

#### Second Resistance and Support

R2 = PP + High – Low
S2 = PP – High + Low
C: Closing Price, H: High, L: Low

If we look at the pivot point calculation above, it can be said to be very different from the standard pivot point calculation.
The following is an example of using Woodie Pivot Point in the EUR / USD currency pair trading. The woodie pivot point is shown in the form of an unbroken line while the standard pivot point is shown with a dashed line.
Because it uses a different formula with a standard pivot point, different results are shown as shown above.
Many traders also prefer to use woodie pivot points because they are calculated from the closing price of the previous period.

### Camarilla Pivot Point

Using the pivot point formula as follows:
R4 = C + ((HL) x 1.5000)
R3 = C + ((HL) x 1.2500)
R2 = C + ((HL) x 1.1666)
R1 = C + ((HL) x 1.0833)
PP = (H + L + C) / 3
S1 = C – ((HL) x 1.0833)
S2 = C – ((HL) x 1.1666)
S3 = C – ((HL) x 1.2500)
S4 = C – ((HL) x 1.5000)
C: Closing Price, H: High, L: Low
The basis for calculating Carmilla Pivot Points is the same as the Woodie Pivot Point, which is the same as using the previous closing price. It’s just that in the Carmilla pivot point we calculate support and resistance levels with a total of 8 levels (4 resistance levels and 4 support levels) with each level multiplied by the multiplier.The concept of calculating Carmilla’s pivot point is that the price has a natural tendency to return to the average price or the tendency to return to the previous closing price.

And the main idea of ​​Carmilla Pivot Point is that we have to buy or sell when the price reaches the third support or resistance level. But if the price can accelerate through the S4 or R4 then this indicates that there is an intraday trend that is very strong and it’s time you ride the train fast 🙂 don’t miss the train.

The following is an example comparison between Carmilla pivot point (solid line) and standard pivot point (dashed line).

As we can see because the emphasis is more on the closing price than the Pivot Point price for the calculation because this can cause all Support and Resistance levels to be above the Pivot Point level or below.

### Fibonacci Pivot Point

Using the pivot point formula as follows

R3 = PP + ((High – Low) x 1,000)

R2 = PP + ((High – Low) x .618)

R1 = PP + ((High – Low) x .382)

PP = (H + L + C) / 3

S1 = PP – ((High – Low) x .382)

S2 = PP – ((High – Low) x .618)

S3 = PP – ((High – Low) x 1,000)

C: Closing Price, H: High, L: Low

Fibonacci pivot point calculations are done by calculating the pivot point level first when we use the standard pivot point. Then multiplying the previous price range with the Fibonacci level and lots of traders who use 38.2%, 61.8%, and 100% in their attention.

Below is the comparison between the Fibonacci pivot point (solid line) and the standard pivot point (dashed line).

Now the question is which Pivot Point can be used as the best indicator? the answer is there is no best pivot point you can use for trading because you have to use it with other indicators to get the best forex trading confirmation. All of the above pivot point indicators are good and you can use them according to your character.