Woodie pivot points
A pivot variant that gives extra weight to the previous close when it calculates the central pivot.
What it shows
Woodie's version uses the same idea as the classic pivot but counts the close twice. That moves the central line toward the close.
The other levels are calculated from the new central pivot in the same way as classic pivots.
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 high (H), low (L) and close (C).
- Pivot P = (H + L + 2C) ÷ 4.
- R1 = 2P − L, S1 = 2P − H.
- R2 = P + (H − L), S2 = P − (H − L).
Starting values: Period previous day; Weight on close 2 of 4. These are proposed and will be tuned on real price data before launch.
How to read it
- The gold line is Woodie's pivot. The dashed gray line is the classic pivot for comparison.
- The gap between the two shows the effect of the weight on the close.
- R and S lines are used the same way as in classic pivots.
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 level price turned at most recently.
- How far Woodie's pivot is from the classic one.
- Whether levels match other tools.
Limits
- Some versions use the current open instead of the close.
- The formula uses only three numbers.
- It is mainly used on short periods.
Try it in forecastviz
- Open any ticker and choose Support and resistance → Woodie pivot points in the left menu.
- Switch between 3M, 6M to see how the picture changes.
- Compare with Classic pivot points and Fibonacci pivot points on the same chart.
Questions
Why count the close twice?
The close is considered the most important price of the day by some traders.
Is it better?
It is a different weighting. We make no claim that it works better.
Related trends
Further reading
- Murphy, Technical Analysis of the Financial Markets
- Edwards and Magee, Technical Analysis of Stock Trends
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.