
Pivot Points: How to Trade Support & Resistance Levels
What if tomorrow’s best trade is already marked on your chart before the bell rings?
Pivot points give you a ready-made map of intraday support and resistance. No crystal ball required. Use them right, and you’ll stop chasing price and start meeting it where the odds stack up.
In BullRush’s own trading playbook, education meets competition: learn a technique, then pressure-test it in a live, gamified environment. That’s exactly how to make pivot points stick: study the levels, then battle-test them in a time-boxed competition where execution matters.
What Are Pivot Points?
Pivot points are calculated price levels derived from the prior session’s high, low, and close. From one simple “pivot” anchor, we plot a ladder of supports (S1, S2, S3) and resistances (R1, R2, R3). Because thousands of traders pre-mark these levels, the price often pauses, accelerates, or reverses right there, creating tradable structure out of yesterday’s action.
Think of pivots as “market memory.” They don’t predict the future; they frame it. On range days, they act like guardrails. On trend days, they become stepping stones; old resistance flips to support, and the ladder pulls price higher (or lower) in clean stages.
Tip: Don’t crowd your chart. Start with classic pivots and R1/S1 only. Add R2/S2 after you build reps.
- Pivots = prior day math → today’s structure.
- Most useful for intraday and short-term swing plans.
- Treat them as reaction zones, not razor-thin lines.
The Math Made Simple
Classic Formula:
Pivot (P) = (High + Low + Close) ÷ 3
R1 = 2P − Low | S1 = 2P − High
R2 = P + (High − Low) | S2 = P − (High − Low)
Other flavors include Fibonacci pivots (great for extensions) and Camarilla (tight ranges for fade traders). But don’t overcomplicate it: the market often respects Classic levels the most.
Tip: Commit to one formula for at least a month. Consistency builds pattern recognition.
- Classic = clean starting point.
- Fibonacci = trend-friendly, Camarilla = mean reversion.
- Standardize before experimenting.
How to Trade Pivots: Bounces, Breaks & Retests
Bounce (Rejection) Setup: Price tags S1/R1, stalls, and prints rejection (wick/engulfing). Enter with the rejection, stop beyond the level or beyond the candle, and target the pivot or the opposite side of the range. Works best on balanced sessions.
Break & Retest (Continuation) Setup: On strong momentum, price punches through R1/S1, pulls back to kiss the level, then goes. Enter on the retest confirmation, stop just beyond the level, and target the next rung (R2/S2). This is trend-day candy.
Tip: Let the first touch do the heavy lifting. The second and third touches are lower quality unless momentum increases.
- Bounce at R1/S1 for mean-reversion days.
- Break-retest to ladder up (or down) on trend days.
- Stops tuck just beyond the level that defines your idea.
Timeframes, Sessions & Different Markets
Pivots are session-aware. For equities, use the prior regular trading hours (RTH) data; for forex/crypto, define a consistent “day” (00:00 UTC to 23:59 UTC) and stick to it. Mixed sessions = mixed signals.
Assets behave differently around pivots. Indices often respect R1/S1 to the tick on balanced opens. FX tends to grind and “walk” pivots across London/NY overlaps. Crypto can overshoot more; wait for the retest rather than knife-catching the first spike.
Tip: Anchor to one session definition per instrument. Journal what the open type (gap, drive, balance) does to your pivot behavior.
- Pivots are only as good as your session definition.
- Behavior varies by asset; adapt triggers, not the core idea.
- Journal opens vs. pivot reactions to refine playbooks.
Risk, Targets & Trade Management with Pivots
Your invalidation should live past the level that defines your thesis. Bounce trade? Stop goes just through R1/S1. Break-retest? Stop tucks on the far side of the reclaimed level. That way, you’re wrong only if the market invalidates the premise. Not on random chop.
Targets are built-in: next rung on the ladder (R1→P, R1→R2, etc.). On trend days, consider scaling at each rung and trailing behind minor swing structure. On range days, take the money at the opposite side. Don’t fall in love with extensions that rarely come.
Tip: If you can’t point to your next rung in one breath, you don’t have a pivot plan; stand down.
- Stops live beyond the level that proves you wrong.
- Targets = the next pivot rung (simple, objective).
- Scale on trend days; hit-and-quit on range days.
Practice That Feels Real: Pressure-Test Pivots
Learning pivots is one thing. Executing under pressure is another. BullRush trading competitions give you that missing ingredient: time limits, leaderboards, and rewards. It’s the perfect lab for turning pivot theory into muscle memory.
Tip: Run a 10-day sprint: only Classic pivots, only bounce or break-retest setups, fixed risk. Review results after the comp, not after every trade.
- Learn → compete → review → iterate.
- Daily comps for reps; Prop for structured validation.
Mark Your Levels, Then Go Prove It
Pivot points turn “I feel” into “I see”. They give you a map, a plan, and an objective way to manage risk. But maps don’t build skill; miles do. Put your pivot playbook under real-time pressure in BullRush competitions, climb the rungs with intention, and let the leaderboard sharpen your execution.
Want a shot at a Prop Account? Use daily comps to warm up, then step into BullRush Prop to validate your edge.
Stop guessing your levels. Mark your pivots, join a BullRush, and prove your plan under fire.
Trade. Compete. Win. With BullRush.
FAQs: Pivot Points, Answered
Q: Which pivot formula should I start with?
Classic. It’s widely used, simple to compute, and clean to read. Stick with it for 30 days before testing alternatives.
Q: What timeframe is best?
Intraday traders often plan from the prior day’s pivots and execute on 1–15 minute charts. Swing traders can use weekly/monthly pivots for higher-timeframe levels.
Q: Do pivots work in crypto and forex?
Yes, just define a consistent “day” for your calculations. Crypto’s 24/7 flow tends to overshoot more; wait for retests rather than first-touch fades.
Q: How do I set stops/targets?
Stops live just beyond the level that invalidates your idea (past S1/R1, etc.). Targets are typically the next rung (R1→R2). Keep it mechanical.
Q: What filters improve pivot trades?
Open type (drive vs. balance), basic momentum confirmation, and higher-timeframe trend. Those three filters remove a lot of noise.