Fibonacci Pivot Points, DeMark Calculation

Fibonacci Pivot Points, DeMark Calculation

This lesson will cover the following

  • Definition
  • Calculation
  • Camarilla Pivot Point Calculation
  • Floor Pivot Point Calculation
  • Woodie Pivot Point Calculation

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We said in one of our previous articles dedicated to pivot points that apart from the standard way to calculate pivot points, there are a few others, namely the DeMark Pivot Point Calculation, the Floor Pivot Point Calculation, the Woodie Pivot Point Calculation, the Camarilla Pivot Point Calculation and the Fibonacci Ratios Calculation. In this article we will list all the formulae used to derive these varieties. Apart from the alternative ways to estimate them, every other aspect regarding the different types of pivot points, as in interpretation, trading etc, is the same.

Let us begin with the pivot point calculation which incorporates Fibonacci ratios.

Pivot Point for Current Day = [High(previous day) + Low(previous day) + Close(previous day)] / 3

To calculate the derivative support and resistance levels, we add Fibonacci ratios.

Resistance 1 = Pivot Point + {[(High(previous day) – Low(previous day)] * 0.382}
Support 1 = Pivot Point – {[(High(previous day) – Low(previous day)] * 0.382}

Resistance 2 = Pivot Point + {[(High(previous day) – Low(previous day)] * 0.618}
Support 2 = Pivot Point – {[(High(previous day) – Low(previous day)] * 0.618}

Resistance 3 = Pivot Point + {[(High(previous day) – Low(previous day)] * 1.000}
Support 3 = Pivot Point – {[(High(previous day) – Low(previous day)] * 1.000}

Woodie Pivot Point Calculation

This method of pivot point calculation uses the open price for the period observed. The formulas are as follows:

Pivot Point for Current Day = [High(previous day) + Low(previous day) + Open (previous day) * 2] / 4

R1 = 2 * Pivot Point – Low(previous day)
S1 = 2 * Pivot Point – High(previous day)

R2 = Pivot Point + High(previous day) – Low(previous day)
S2 = Pivot Point – High(previous day) + Low(previous day)

R3 = High(previous day) + 2 * [Pivot Point – Low(previous day)]
S3 = Low(previous day) – 2 * [High(previous day) – Pivot Point]

R4 = R3 + High(previous day) – Low(previous day)
S4 = S3 – High(previous day) + Low(previous day)

Camarilla Pivot Points

Here are the formulas:

Central Pivot Point = [High(previous day) + Low(previous day) + Close(previous day)]/3

R1 = Close(previous day) + [High(previous day) – Low(previous day)] * 1.1/12
S1 = Close(previous day) – [High(previous day) – Low(previous day)] * 1.1/12

R2 = Close(previous day) + [High(previous day) – Low(previous day)] * 1.1/6
S2 = Close(previous day) – [High(previous day) – Low(previous day)] * 1.1/6

R3 = Close(previous day) + [(High(previous day) – Low(previous day)] * 1.1/4
S3 = Close(previous day) – [(High(previous day) – Low(previous day)] * 1.1/4

R4 = Close(previous day) + [High(previous day) – Low(previous day)] * 1.1/2
S4 = Close(previous day) – [High(previous day) – Low(previous day)] * 1.1/2

Floor Pivot Points Calculation

The formulae are as follows:

Pivot Point = [High(previous day) + Low(previous day) + Close(previous day)]/3

R1 = (2*Pivot Point) – Low(previous day)
S1 = (2*Pivot Point) – High(previous day)

R2 = Pivot Point + (R1 – S1)
S2 = Pivot Point – (R1 – S1)

R3 = Pivot Point + (R2 – S2)
S3 = Pivot Point – (R2 – S2)

DeMark Pivot Points

The DeMark method begins with a different base and differs from the other pivot point calculation styles. Here the pivot points depend on the relation between the close and the open.

If Close < Open, then X = High(previous day) + [2 x Low(previous day)] + Close(previous day) If Close > Open, then X = [2 x High(previous day)] + Low(previous day) + Close(previous day)

If Close = Open, then X = High(previous day) + Low(previous day) + [2 x Close(previous day)]

Pivot Point (P) = X/4

Support 1 (S1) = X/2 – High(previous day)

Resistance 1 (R1) = X/2 – Low(previous day)

If you have any questions or suggestions you are welcome to join our forum discussion about Fibonacci Pivot Points, DeMark Calculation.
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