Pivot points in futures trading are a long-standing technical analysis tool with a strong following among intraday and swing traders alike. Originally used by floor traders to gauge potential market turning points with only a few daily price values, pivot points remain popular for identifying key support and resistance levels in futures markets today.
Whether you're new to trading or looking to expand your charting skills, understanding how pivot points work can help you add more structure to your futures trading strategy.
What are pivot points?
Pivot points are calculated price levels derived from the previous trading day’s high, low, and close. The core value, called the pivot point (P), acts as a central reference level for the current day. From that value, additional levels—typically three support (S1, S2, S3) and three resistance (R1, R2, R3) levels—are calculated (figure 1).
Figure 1: Pivot points with additional levels shown
These levels can be used to:
- Identify potential intraday price targets
- Gauge market sentiment (bullish or bearish relative to the pivot)
- Spot reversal or breakout zones
- Inform stop-loss or take-profit placement
Because many traders and institutions monitor these levels, pivot points can become self-reinforcing: price often reacts to these areas simply because so many traders are watching them.
Why pivot points in futures trading still matter today
Despite being one of the oldest technical indicators, pivot points remain relevant today because they offer a simple yet effective framework for price action analysis. In fast-moving markets like futures, where intraday volatility can create rapid changes in direction, pivot points can help you orient yourself and plan your trades around key inflection zones. Pivot points are especially useful for:
- Intraday trading: If you focus on short-term moves, you can use daily pivot points as potential entry and exit guides throughout the session.
- Risk management: By using pivot levels as natural places to set stop-losses or scale out of trades, you can better define risk and reward parameters.
- Confirming other indicators: You can use pivot points in conjunction with other tools like oscillators, moving averages, and volatility bands to strengthen your trade setups.
How to use pivot points in your futures strategy
While traditional pivot formulas are based on the previous day’s prices, traders have adapted the concept in several ways. Some apply weekly or monthly pivots for longer-term context, while others create custom pivot indicators based on proprietary logic or volume-weighted price levels. Here are a few approaches to consider:
- Support/resistance confirmation: Use pivot levels to validate support or resistance identified through other means like trendlines or moving averages.
- Volatility-based trading: Combine pivots with volatility bands (e.g., Bollinger Bands) to assess overextended price moves.
- Scalping and short-term setups: Look for reactions at pivot levels on smaller time frames and trade bounces or breakouts as they occur.
Traders often observe how price behaves at each level: Do buyers defend the support pivot? Does a break of resistance indicate stronger momentum? Observing patterns like these can help inform your next steps and build your trade confidence.
Pivot points are a guide, not a guarantee
While pivot points in futures trading can add clarity to your charts, they are not predictive tools. Like all technical analysis methods, they are best used as part of a broader trading plan. Pivot points offer references for planning and discipline, but they should always be paired with sound risk management.
It’s also important to recognize when pivot levels are providing support or resistance as expected—and when they’re not. For example, in highly volatile market conditions or around major economic announcements, price may slice through pivot levels without reacting. Being adaptable and not overly reliant on any single indicator is key to long-term trading success.
Build confidence with structure
One of the greatest strengths of pivot points is their ability to provide structure in the fast-moving and sometimes chaotic futures markets. By applying pivot levels consistently and combining them with other tools or trade setups, you can create a framework that helps bring order to your trading decisions.
Using pivot points can help you improve your trading confidence by providing added confirmation, improving timing, and supporting strategy development.

Explore more with NinjaTrader
Ready to see how pivot points in futures trading can enhance your approach? NinjaTrader’s award-winning platform supports advanced charting and technical analysis tools, including customizable pivot point indicators and multi-timeframe support.
Practice analyzing pivot setups in our risk-free sim environment or apply them directly in live markets with our powerful platform tools. To learn more, watch the full video at the top of this post or explore our education resources.