# Intraday trading for beginners – Pivot points – समझे और सीखे

What are Pivot Points?

Pivot Points are the levels which are Plotted on the stock chart based on calculation from the Previous days Open, high, Low, Close values.

It is used in Intraday Trading and serves as good levels for Entering and Exiting any trade.

Types of Pivot Points

There exists seven pivot levels on the chart:

Pivot Level (PP) – This is the main and most important Pivot line on the chart.

Resistance 1 (R1) – This is the first Resistance level above the main pivot line.

Resistance 2 (R2) – This is the second Resistance level above the main pivot point, and first above R1.

Resistance 3 (R3) – This is the third Resistance level above the main pivot point, and first above R2

Support 1 (S1) – This is the first Support level below the main pivot point.

Support 2 (S2) – This is the second Support level below the main pivot point and first below S1.

Support 3 (S3) – This is the third Support level below the main pivot, and first below S2.

The Black line is main Pivot Line

Three red lines above the Pivot line are R1, R2 and R3 respectively.

Three green lines above the Pivot line are S1, S2 and S3 respectivley.

PP Calculation

Below is formula which you is used to calculate the PP level on your chart:

Pivot Point (PP) = (Daily High + Daily Low + Close) / 3

R1 R2 S1 S2 Pivot Levels Calculation

Now we have calculated and determined the PP level, let’s begin by calculating the R1, R2, S1, and S2 pivot levels:

R1 = (2 x Pivot Point) – Daily Low

R2 = Pivot Point + (Daily High – Daily Low)

S1 = (2 x Pivot Point) – Daily High

S2 = Pivot Point – (Daily High – Daily Low)

R3 S3 Pivot Levels Calculation

We are almost through with the PP calculations. It has two more levels to complete – R3 and S3.

R3 = Daily High + 2 x (Pivot Point – Daily Low)

S3 = Daily Low – 2 x (Daily High – Pivot Point)

See that the formulas for R1, R2, R3, S1, S2, and S3 all include the PP value.