Pivot Points
Pivot Points are used to determine overall trend over different time frames.
Usage
Use to identify key daily, weekly, or monthly support and resistance levels calculated from the prior session OHLC. Pivot levels are widely watched by floor traders and algorithms alike.
Background
Traditional Pivot Points, widely used by floor traders, calculate a central pivot (P = (H+L+C)/3) plus support and resistance levels at fixed multiples of the prior session range. Because they are derived from universal OHLC data and widely published, they become self-fulfilling levels of institutional interest. — StockCharts ChartSchool
Formula
\[
P = \frac{H + L + C}{3}
\]