Key Points
- Pivot points in crypto are pre-calculated support and resistance levels based on the prior period’s high, low, and close.
- Pivot point levels R1 R2 S1 S2 meaning: R levels are potential resistance zones and S levels are potential support zones around the central pivot (PP).
- Pivot points are widely used because many traders watch the same levels, which can create repeatable reactions.
- How to use pivot points in crypto trading for beginners: treat pivots as zones, then look for price acceptance or rejection around them, not automatic reversals.
- Pivot points work best on intraday charts when you use a consistent anchor period such as daily pivots on hourly charts.
- Pivot points are most effective when they align with other evidence such as prior highs and lows, VWAP, or psychological levels.
- If any terms feel unfamiliar, use the Crypto Glossary for quick definitions, then return to this lesson.
Quick Answer
Pivot points are a set of pre-calculated levels that map potential support and resistance based on the previous period’s high, low, and close. The central pivot is often labelled PP. Levels above it are resistances like R1 and R2, and levels below it are supports like S1 and S2. Traders use pivot points in crypto to anticipate where price may react during the next session. The best way to use pivots is as a context map, then confirm reactions with price behaviour and other levels such as VWAP and prior highs and lows.
Where This Lesson Fits
Lesson 26 introduced VWAP and showed how volume weighted average price acts as an intraday benchmark for “fair price”. Lesson 27 adds another intraday mapping tool… pivot points, which provide pre-calculated support and resistance zones that many traders watch.
This lesson is part of the Technical Analysis for Beginners series. For the full lesson map and all supporting guides, visit the Technical Analysis for Beginners Hub.
What Are Pivot Points?
Pivot points are calculated from the previous session.
They are designed to map where price might find support or resistance today, based on where it traded yesterday.
Different pivot formulas exist, but the core idea is the same: a shared map of likely reaction zones.
Pivot Point Levels R1 R2 S1 S2 Meaning
Most pivot systems include:
- PP: the central pivot point
- R1, R2, R3: resistance levels above PP
- S1, S2, S3: support levels below PP
Mark:
- PP as the “balance point”
- R levels as upside reaction zones
- S levels as downside reaction zones
These are not guaranteed turning points. They are reference zones where reactions become more likely because many traders are watching them.
Why Pivot Points Can Work In Crypto
Pivot points can work because they are self-reinforcing.
If enough traders use the same levels, those levels can become decision zones.
That reaction can come from:
- traders taking profit near resistance pivots
- traders looking for bounces near support pivots
- market makers and liquidity providers leaning around shared levels
- intraday systems built around pivots
Crypto can be volatile, but that volatility often still respects shared levels when activity is high.
How To Use Pivot Points In Crypto Trading For Beginners
Keep it simple.
Step 1: Choose A Consistent Pivot Period
Most beginners should start with daily pivots.
Daily pivots can be used on intraday charts like 15-minute, 1-hour, or 4-hour.
Consistency matters more than “finding the best” period.
Step 2: Treat Pivot Points As Zones
Price rarely turns on the exact line.
Use pivots as zones and watch price behaviour around them.
Check:
- does price reject the pivot level and return?
- does price hold above or below and continue?
- does price break and retest the level?
These are the same confirmation principles you learned in breakouts and fakeouts.
Step 3: Use PP As A Session Reference
PP often acts as a balance line.
When price is above PP, the session tone can feel more bullish. When price is below PP, the tone can feel more bearish.
This is not a rule… it is a simple intraday framing tool.
Step 4: Look For Confluence With Other Tools
Pivots get stronger when they overlap with other evidence.
Useful overlap can include:
- VWAP from Lesson 26
- psychological levels from Lesson 24
- support and resistance zones from Lesson 6
- prior day highs and lows
- key moving averages from Lessons 9 and 10
If multiple independent tools point to the same zone, the probability of a reaction often increases.
Pivot Points TradingView Settings Explained
TradingView has multiple pivot styles and settings.
The best approach for beginners is:
Start with:
- traditional pivots
- daily pivot timeframe
- clear labels for PP, R1, R2, S1, S2
Then observe how price behaves around pivots for several weeks before changing settings.
Do not optimise settings to fit one chart… consistency is what makes pivots meaningful.
Common Pivot Point Mistakes
- treating R1 or S1 as automatic reversal points
- changing pivot formulas constantly
- ignoring higher timeframe support and resistance
- ignoring volatility and news events
- forcing pivots on illiquid charts where levels do not matter
Pivot points are most useful as a map, not a trigger.
Mini FAQs
What are pivot points in crypto?
Pivot points are pre-calculated support and resistance levels based on the previous period’s high, low, and close, used to map likely reaction zones.
What is the pivot point indicator?
It is an indicator that plots a central pivot (PP) and multiple support (S) and resistance (R) levels such as S1, S2, R1, and R2.
What do R1 R2 S1 S2 mean in pivot points?
R levels are potential resistance zones above PP and S levels are potential support zones below PP, calculated from prior period price data.
How do you use pivot points in crypto trading for beginners?
Use pivots as zones, watch price reaction and confirmation, and combine them with other evidence such as VWAP and prior highs and lows.
What are good TradingView pivot points settings?
Beginners can start with traditional pivots using daily pivots on intraday charts, showing PP, R1, R2, S1, and S2 clearly.
Do pivot points work in crypto?
They can, especially on liquid markets with active intraday participation, but they are less reliable on illiquid charts or during abnormal volatility events.
Next Lesson
In this lesson you learned what pivot points are, what pivot point levels R1 R2 S1 S2 mean, how to use pivot points in crypto as an intraday map, and how to set them up in TradingView without overcomplicating the tool.
Next, Lesson 28 covers using multiple timeframes, showing you how to align the bigger trend with the shorter-term chart so you stop getting whipsawed by noise.
For the full lesson map and all supporting guides, visit the Technical Analysis for Beginners Hub.
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Maps… before moves.
Legal And Risk Notice
This content is for education and information only and should not be considered financial, legal, or tax advice. Crypto assets are volatile and high risk. You are responsible for your own research and decisions, and you should consider seeking independent professional advice where appropriate.
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