Search for an answer or browse help topics to create a ticket
View all categories

The pivot points I'm calculating manually differs from the pivot study on Kite charts. Why?

The intraday candles on Kite charts are formed using live data received from the exchange, which may not log all transactions that took place in the interval. On the other hand, the daily candles are updated based on the exchange’s ‘bhavcopy’ data. Check this article to learn more about the daily and intraday OHLC data on Kite charts. 

When you open an intraday chart, the charting engine will only have the intraday data points historically. It won’t have daily data points. So, accordingly, to find the previous day OHLC, the intraday chart will look at all the candles on the previous day and then take these points.

When you open the 5 min chart, the charting engine will have only 5 min data points historically. It won’t have 1-day data points. What this means is that to find the previous day's OHLC, the 5 min chart will look at all the candles in the previous day and then take these points.

This may lead to differences in calculating indicators manually, even when you're using the same formula.

Pivot Points formula are calculated as follows on Kite for ChartIQ:

KITE(ChartIQ)
Pivot point = (H + L + C) / 3
First support level (S1) = (2 * P) – H
Second support level (S2) = P – (H – L)
Third support level (S3) = P – 2*(H-L)
First resistance level (R1) = (2 * P) – L
Second resistance level (R2) = P + (H – L)
Third resistance level (R3) = P + 2*(H – L)

To put this into an example.

Assume XYZ’s stock has it’s High(H) - 129.7, Low(L) - 126.9 and Close(C) - 127.35 respectively. So the pivot points in Kite would be calculated as follows : 

KITE(ChartIQ)
Pivot point = (H + L + C) / 3127.98
First support level (S1) = (2 * P) – H126.27
Second support level (S2) = P – (H – L)125.18
Third support level (S3) = P – 2*(H-L)122.38
First resistance level (R1) = (2 * P) – L129.07
Second resistance level (R2) = P + (H – L)130.78
Third resistance level (R3) = P + 2*(H – L)133.58

Please check this post on TradingQ&A for a detailed explanation.