Woodie Pivot Points
Definition of 'Woodie Pivot Points'
R4 = R3 + RANGE
R3 = H + 2 * (PP - L) (same as: R1 + RANGE)
R2 = PP + RANGE
R1 = (2 * PP) - LOW
PP = (HIGH + LOW + (TODAY'S OPEN * 2)) / 4
S1 = (2 * PP) - HIGH
S2 = PP - RANGE
S3 = L - 2 * (H - PP) (same as: S1 - RANGE)
S4 = S3 - RANGE
Where R1 through R4 are Resistance levels 1 to 4, PP is the Pivot Point, S1 through S4 are support levels 1 to 4, RANGE is the High minus the Low for the given time frame (usually daily).
One of the key differences in calculating Woodie's Pivot Point to other pivot points is that the current session's open price is used in the PP formula with the previous session's high and low. At the time-of-day that we calculate the pivot points on this site in our Daily Notes we do not have the opening price so we use the Classic formula for the Pivot Point and vary the R3 and R4 formula as per Woodie's formulas.
See also Classic Pivot Points and Camarilla Pivot Points.
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