Fibonacci Pivot Points, DeMark Calculation

We mentioned in one of our previous articles dedicated to pivot points that, apart from the standard way of calculating them, there are several other methods, 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 list all the formulae used to derive these variants. Aside from the alternative methods of estimating them, every other aspect regarding the different types of pivot points – interpretation, trading, etc. – remains the same.

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

Pivot Point for the 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 formulae are as follows:

Pivot Point for the 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 formulae:

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 relationship between the close and the open.

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)