Trends/Support and resistance

DeMark pivot points

A pivot with one resistance and one support whose math depends on whether the previous period closed above or below where it opened.

Support and resistanceBest on 3M, 6MAlso called DeMark levels

Illustration of the DeMark pivot points shape. It is a sketch, not real price data.

What it shows

Tom DeMark's pivots use a different calculation depending on the previous period's open and close. The result is a central pivot with one level above and one below.

The idea is to give more weight to the side the previous period leaned toward.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Take the previous period's open (O), high (H), low (L) and close (C).
If C < O then X = H + 2L + C. If C > O then X = 2H + L + C. If C = O then X = H + L + 2C.
Pivot P = X ÷ 4.
R1 = X ÷ 2 − L and S1 = X ÷ 2 − H.

Starting values: Levels P, R1, S1; Period previous day. These are proposed and will be tuned on real price data before launch.

How to read it

The gold line is the pivot.
One red line above and one teal line below.
The levels move depending on the previous period's open and close.

Status labels you may see

Label	What it means
Above the pivot	Last close is above P.
Below the pivot	Last close is below P.
Near a level	Within 0.5% of any line.

What cancels it

Nothing cancels it. The levels are recalculated each period.

What traders check next

Which line price turned at most recently.
Whether the previous period closed above or below its open.
Whether levels match other tools.

Limits

Only three levels are drawn.
The formula uses only four numbers.
It is mainly used on short periods.

Try it in forecastviz

Open any ticker and choose Support and resistance → DeMark pivot points in the left menu.
Switch between 3M, 6M to see how the picture changes.
Compare with Classic pivot points and Woodie pivot points on the same chart.

Open on a ticker

Questions

Who is DeMark?

Tom DeMark is a well-known technical analyst. We have not confirmed other details.

Why is the formula conditional?

It treats up periods and down periods differently.