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Pivot Point Breakoutlevels everyone computes the same way

Evidence: WeakBeginnerBreakout · Reference level

Floor pivots are arithmetic: the pivot is yesterday's high, low and close averaged, and R1 and S1 are simple reflections of it. Nothing is drawn by hand and nothing is judged.

That is the whole argument for them. Unlike a trendline, everybody's pivot is the same number — which is the one condition a level needs before orders can cluster at it.

The evidence here is for what happens when resting orders trigger, not for this way of drawing the level. The level is a choice; the cascade behind it is the mechanism.

Category
Breakout · Reference level
Timeframe
M15 execution · pivots computed from D1
Suitable pairs
EURUSD · GBPUSD · US30 · XAUUSD
Session
London and New York · pivots reset at the broker's daily rollover
Indicators / tools
Classic floor pivots — PP, R1, S1 · ATR(14) · a fixed daily boundary

Valid setup

BO-09 · PIVOT POINT BREAKOUT — VALID SETUP EURUSD · M15 · price already above the pivot, then an M15 close above R1 LONG 1.08235 1.08330 1.08424 1.08518 1.08612 1.08706 1.08801 to R2 1R R2 = target ENTRY = M15 close above R1 R1 STOP = back below R1 − 0.4 × ATR PP S1 1 2 3 4 1.08740 1.08600 1.08590 1.08540 ① Price is already holding above the pivot ② It approaches R1 — the level everyone computed identically ③ Daily boundary documented, so the pivots are repeatable ④ M15 closes above R1 plus spread — enter at that close ⑤ Out if price closes back below R1 ⑥ Target R2, or the day close

Exact rules

Entry

  • Compute from yesterday's D1 bar: PP = (high + low + close) ÷ 3, R1 = 2 × PP − low, S1 = 2 × PP − high.
  • Document your broker's daily boundary. A different rollover gives different pivots, and that single choice changes every trade on this page.
  • Trigger: an M15 close above R1, plus spread, with price already above PP.
  • Enter at that close. Mirror below S1 for shorts.
  • One trade per level per day. A second attempt at the same pivot is a different setup.

Stop loss

  • Back below the pivot level that was broken, minus 0.4 × ATR(14).
  • If price closes back below R1, leave. The level has been reclaimed from the other side.
  • Risk 0.5%.

Take profit / exit

  • R2, computed as PP + (high − low) from yesterday's bar.
  • Or exit at the day close.
  • A partial at the midpoint between R1 and R2 is a reasonable variant.

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Trading carries risk and most retail accounts lose money. Nothing on this page is financial advice or a recommendation to trade. The chart is an illustration of the rules on constructed candles — it is not a record of a trade and not a backtest.