Pivot points and resistance lines are calculated at the end of the day based on the high, low, and close of the day's trading. The formulas are as follows:
· Pivot Point (P) = (H + L + C)/3
· First Resistance (R1) = (2 * P) â L
· First Support (S1) = (2 * P) - H
· Second Resistance (R2) = P + (H - L)
· Second Support (S2) = P - (H - L)
· Third Resistance (R3) = (P - S1) + R2
· Third Support (S3) = P - (R2 - S1)