The classic formula
P = (High + Low + Close) ÷ 3
R1 = 2P − Low S1 = 2P − High
R2 = P + (High − Low) S2 = P − (High − Low)
R3 = High + 2(P − Low) S3 = Low − 2(High − P)
Yesterday's range produces today's levels. That is the entire idea, and its usefulness has nothing to do with the arithmetic being clever — it comes from the fact that a great many participants compute the same numbers and place orders near them.
Three methods, and they disagree
The calculator offers all three because they produce visibly different levels from identical inputs:
- Classic — the widest spread of levels and the most widely watched. If you only use one, this is the one others are also looking at.
- Fibonacci — the same pivot, with levels at 38.2%, 61.8% and 100% of the previous range. Tighter than classic in the middle.
- Camarilla — built from the close rather than the pivot, with levels clustered much closer in. Designed for mean reversion, and it produces a very different picture on a wide-range day.
Seeing them together is the point. A trader saying "price is at R1" is saying something different depending on which set their platform draws, and platforms do not agree on the default.
What a pivot level is and is not
It is not a prediction. There is no mechanism by which yesterday's average of three prices determines today's turning point.
What it is, is a shared reference. Enough desks and retail platforms draw the same classic pivots that orders cluster around them, and clustered orders produce the reactions that make the levels appear to work. That is self-fulfilling in the narrow sense and genuinely useful in the practical one — but it means the value comes from consensus, not from the formula, which is why using an unusual method or an unusual session definition removes most of the benefit.
The session definition is a real problem
"Yesterday's high, low and close" is ambiguous in a 24-hour market.
Forex has no single close, so platforms use different cut-offs — 17:00 New York, midnight UTC, or the broker's own server time. Two brokers can therefore print different pivots on the same pair on the same day, and neither is wrong.
If you use pivots, check which session your platform uses and stay with it. Switching brokers can silently move every level you trade.