Intraday Trend and Target Calculator

| Added in Business Finance

What is Intraday Trend and Target Analysis?

Intraday trading requires quick decisions based on reliable indicators. Pivot points and support/resistance levels help traders identify potential price targets and trend direction for the trading day.

These calculations use the previous day's high, low, and close prices to generate actionable trading levels that many traders monitor.

How to Calculate Pivot Points

The main formulas are:

Pivot Point:
[\text{Pivot} = \frac{\text{High} + \text{Low} + \text{Close}}{3}]

Resistance Levels:
[\text{R1} = (2 \times \text{Pivot}) - \text{Low}]
[\text{R2} = \text{Pivot} + (\text{High} - \text{Low})]

Support Levels:
[\text{S1} = (2 \times \text{Pivot}) - \text{High}]
[\text{S2} = \text{Pivot} - (\text{High} - \text{Low})]

Trend Determination:

  • If Close > Pivot: Bullish
  • If Close < Pivot: Bearish
  • If Close = Pivot: Neutral

Calculation Example

Given:

  • Previous High: $105.50
  • Previous Low: $100.25
  • Previous Close: $103.00

Pivot Point:
[\text{Pivot} = \frac{105.50 + 100.25 + 103.00}{3} = 102.92]

The pivot point is $102.92.

R1: (2 × 102.92) - 100.25 = $105.59
S1: (2 × 102.92) - 105.50 = $100.34
R2: 102.92 + (105.50 - 100.25) = $108.17
S2: 102.92 - (105.50 - 100.25) = $97.67

Trend: Bullish (Close $103 > Pivot $102.92)

Frequently Asked Questions

A pivot point is a technical analysis indicator used to determine overall market trends over different time frames, calculated from the average of high, low, and close prices.

Support levels are prices where buying interest may emerge, while resistance levels are prices where selling pressure may increase.

If the close is above the pivot point, the trend is bullish. If below, it is bearish. If equal, it is neutral.

No, pivot points should be used alongside other technical analysis tools and proper risk management strategies.