๐ Capital Market Chronicles – Episode 329: TECHNICAL ANALYSIS – PIVOT POINTS (Part II)
The Math Behind the Magic ๐ค➕
Alright… time for a little math ๐
Don’t worry — this is not your school exam.
No stress. No panic. Just simple logic.
๐งฎ The Core Formula
The central Pivot Point (P) is calculated as:
๐ (High + Low + Close) ÷ 3
That’s it. Seriously.
๐ From One Number… Many Levels
From this single pivot value, we derive:
- P (Pivot) → The main level
- S1, S2 → Support levels ๐งฑ
- R1, R2 → Resistance levels ๐ง
These levels act like zones of action.
๐งช Let’s Make It Real
Suppose:
- High = ₹150
- Low = ₹140
- Close = ₹145
๐ Pivot = ₹145
Now this becomes your reference point for today.
๐ฏ Why These Levels Matter
Markets are not random (even if they feel like it ๐)
Prices often:
- Pause near levels ⏸️
- Reverse direction ๐
- Break out with momentum ๐
And Pivot Points help you identify these zones.
๐ Trader Transformation
Before Pivot Points:
๐ “Let me guess what happens next…” ๐ค
After Pivot Points:
๐ “Let me wait for confirmation.” ๐
๐ง Hidden Insight
Why does this work?
Because:
๐ Many traders use Pivot Points
Which means:
๐ These levels become self-fulfilling zones
๐ก Final Thought
It may look like math…
But in the market, it behaves like a structure.
And structure brings discipline ๐๐
⚠️ Disclaimer: This Blog is for general guidance only and does not replace personalised financial advice.
๐ Stay tuned to Our Blog https://www.stockmarketpedia.in/home/blog — where we decode the stock market one laugh at a time. ๐๐ฐ
๐ Craving deeper dives and serious know-how (minus the financial snoozefest)? Surf over to: https://www.stockmarketpedia.in/
๐ Prefer your reading with chai in one hand and market wisdom in the other? Now available on Amazon Kindle
Stock Market Decoded - A Beginner's Guide to Smart Investing by P. Shirley — perfect for sounding smarter than your portfolio at dinner parties.
Money Money Money – Tickling You into an Investing Habit by P. Shirley — the nudge your lazy rupees have been waiting for.
Want to open an account with Mirae Asset Sharekhan?
Got burning questions about bulls, bears, or bizarre market behaviour?
Ping us at: stockmarketpedia4u@gmail.com
WhatsApp: 9113840449
© 2026 Stock Market Pedia. All Rights Reserved







