Pivot Points Indicator: Daily vs Weekly Strategy

Pivot Points are a favorite among traders for identifying key support and resistance levels. Used widely in day trading and swing trading, these levels are calculated based on previous price action and are easy to apply on platforms. But should you rely on daily or weekly Pivot Points? Here’s how to decide.

What Are Pivot Points?

Pivot Points are calculated using the high, low, and close of a previous period (day or week). From this, multiple levels are derived:

• Pivot Point (P): The central price level.
  
  
• Support (S1, S2, etc.): Levels below the pivot point.
  
  
• Resistance (R1, R2, etc.): Levels above the pivot point.
  

Daily Pivot Points

• Ideal for intraday traders looking to capture short-term price movements.
  
  
• Levels reset at the beginning of each trading day.
  
  
• Helps identify potential turning points and intraday trend confirmation.
  

Weekly Pivot Points

• Better suited for swing traders and those holding positions for several days.
  
  
• Provide a broader view of price zones and trend strength.
  
  
• Can serve as a roadmap for the week’s trading activity.
  

Which One Should You Use?

• Use Daily Pivot Points if you’re entering and exiting trades within the same day.
  
  
• Use Weekly Pivot Points if you want a wider context for your trades or are targeting multi-day setups.
  
  
• Some traders overlay both to understand short-term volatility within a longer-term trend.
  

Using Pivot Points on TradingView

• Go to Indicators and search for Pivot Points Standard.
  
  
• Choose the time frame—Daily or Weekly—from the settings.
  
  
• Observe how price reacts at each level to plan entries and exits.
  

Conclusion

Daily and Weekly Pivot Points each have their place depending on your strategy. Use them not just for support/resistance, but as part of a broader plan that includes momentum indicators and volume.