Pivot point formulas
Classic: P = (H + L + C) ÷ 3, R1 = 2P − L, S1 = 2P − H, R2 = P + (H − L), S2 = P − (H − L). Fibonacci pivots use 0.382, 0.618 and 1.0 of the range from P. Camarilla levels are tighter and centred on the close.
How day traders use pivots
Price above P is read as bullish bias and below as bearish. R1/S1 are common first targets; R3/S3 often mark exhaustion. Combine them with session times: the London and New York opens are when pivots are tested most.