Direct Answer
DeMark pivot points are a pivot-point variant developed by Tom DeMark whose formula is conditional on whether the prior period closed above, below, or exactly at its open, rather than always averaging the high, low, and close the same way. A commonly cited version picks one of three weighted sums (X) depending on that close-versus-open relationship, then derives a single pivot point, one resistance level (R1), and one support level (S1) from it, the exact formulation varies across secondary sources and platforms, so verify the version your charting tool uses before comparing levels.
Key Takeaways
- DeMark pivot points use one of three different formulas depending on whether the prior period's close was below, above, or equal to its open, not a single fixed averaging rule.
- The pivot point is always the weighted sum X divided by 4; R1 and S1 are then derived from X ÷ 2.
- This version is commonly presented with just one resistance level and one support level, rather than a full R1, R3/S1, S3 ladder some other pivot systems use.
- Because it reacts to the direction of the prior close, the DeMark pivot sits above a standard high-low-close pivot after an up close and below it after a down close.
- Tom DeMark's exact original formulation varies across secondary sources and trading platforms, treat the formula below as a commonly cited version, and verify against your specific platform's documentation.
What Are DeMark Pivot Points?
DeMark pivot points are a pivot-point variant developed by Tom DeMark. Like other pivot-point systems, the goal is to translate one completed period's high, low, close, and open into a small set of reference levels, a central pivot plus nearby support and resistance, that traders watch on the next period's chart. What sets the DeMark version apart is that the formula itself is conditional: which of three weighted calculations gets used depends on whether the prior period closed above, below, or exactly at its own open.
That conditional structure means the DeMark pivot is not simply an average of the prior high, low, and close the way a standard pivot point is. It leans toward the high after an up close and toward the low after a down close, which is intended to make the resulting pivot reflect the direction the prior period actually resolved in, not just the raw range it traded through.
Key takeaways: the formula changes based on close-versus-open, not a single fixed rule. The pivot is always X ÷ 4, with R1 and S1 derived from X ÷ 2. This version commonly ships with one resistance and one support level rather than a full ladder. The pivot skews toward the high after an up close and toward the low after a down close. Tom DeMark's exact original formulation isn't standardized across sources, verify the version your platform uses.
The Formula
A commonly cited version of the DeMark pivot-point formula starts by picking one of three weighted sums, called X, based on how the prior period's close compares with its open:
- If Close < Open: X = High + 2×Low + Close
- If Close > Open: X = 2×High + Low + Close
- If Close = Open: X = High + Low + 2×Close
From X, the three reference levels follow:
Pivot Point = X ÷ 4
R1 = X ÷ 2 − Low
S1 = X ÷ 2 − High
Doubling the high in the up-close case (and the low in the down-close case) is what pulls the pivot toward the side of the range the period actually resolved on, instead of treating every close the same way a simple high-low-close average would. Note for accuracy: Tom DeMark's exact original formulation varies across secondary sources and trading platforms, the formula above is a commonly cited version, not a single universal standard, so verify it against your specific platform's documentation before relying on the exact levels it plots.
Worked Example
Hypothetical example, for education only.
Suppose a stock's prior full trading day had an Open of $100.00, a High of $103.00, a Low of $98.00, and a Close of $102.00. Because Close ($102.00) is above Open ($100.00). This is the Close > Open case:
X = 2×High + Low + Close = (2 × 103.00) + 98.00 + 102.00 = 206.00 + 98.00 + 102.00 = 406.00
Pivot Point = 406.00 ÷ 4 = $101.50
X ÷ 2 = 406.00 ÷ 2 = 203.00, so:
R1 = 203.00 − 98.00 (Low) = $105.00
S1 = 203.00 − 103.00 (High) = $100.00
For comparison, a standard high-low-close pivot on the same day, (103.00 + 98.00 + 102.00) ÷ 3, would land at $101.00, slightly below the DeMark pivot of $101.50. The gap exists because the DeMark formula double-weights the high specifically when the period closed above its open, pulling the reference levels a little higher to reflect that up close.
The table below shows how the same $103.00 High and $98.00 Low would produce a different pivot depending only on where the Close fell relative to the $100.00 Open:
| Close vs. Open | Close | X | Pivot (X ÷ 4) | R1 | S1 |
|---|---|---|---|---|---|
| Close < Open | $99.00 | 398.00 | $99.50 | $101.00 | $96.00 |
| Close = Open | $100.00 | 401.00 | $100.25 | $102.50 | $97.50 |
| Close > Open | $102.00 | 406.00 | $101.50 | $105.00 | $100.00 |
The example is hypothetical; it exists to show how the arithmetic moves in response to the close-versus-open condition, not to suggest that any particular stock will trade at these exact prices or that touching R1 or S1 predicts what happens next.
How DeMark Pivot Points Are Used
Pivot as a directional reference
Traders commonly treat the pivot point itself as a rough dividing line for the next period: price trading above it is often read as a mildly bullish bias for that period, and price trading below it as a mildly bearish bias. Because the DeMark pivot already leans toward the prior close's direction, some traders view a period opening on the same side of the pivot as the prior close as a continuation cue, while an open on the opposite side is read as a potential shift, neither reading is a guarantee, and both need price confirmation.
R1 and S1 as reaction zones
R1 and S1 are commonly watched as areas where price may pause, reverse, or accelerate through, similar to how other support/resistance levels are used. A move that reaches R1 and stalls is sometimes read as a short-term resistance test; a clean break through R1 is sometimes read as room to extend further, though neither is guaranteed by the formula itself. The same logic applies to S1 on the downside.
Combining with other tools
Because DeMark pivots are derived purely from one prior period's four price points, many traders pair them with volume, trend context from moving averages, or a separate momentum reading rather than treating the levels in isolation.
Choosing a Prior Period
DeMark pivot points don't have a lookback "length" the way a moving average does, the one input that commonly varies is which completed period's Open, High, Low, and Close feed the calculation.
| Prior period used | What the resulting levels describe | Common use |
|---|---|---|
| Previous day | Reference levels for the current trading day | Day trading and short-term intraday setups |
| Previous week | Reference levels for the current week | Swing trading over several days |
| Previous month | Reference levels for the current month | Position trading and longer-horizon context |
Whichever period is chosen, confirm whether the platform's Open, High, Low, and Close include extended-hours activity or only the regular session, that convention can change the resulting levels, and it should stay consistent between research and live use.
Why DeMark Pivot Points Produce False Signals
- Sideways or erratic markets, price can cross the pivot or touch R1/S1 repeatedly with no sustained follow-through when there's no clear prevailing trend.
- Single-period sensitivity, because the calculation uses only one prior period's Open, High, Low, and Close, an unusually wide or gapped prior period can produce reference levels that don't reflect typical recent behavior.
- News and event risk, earnings, economic releases, and other catalysts can move price straight through a pivot or R1/S1 level regardless of what the formula implies.
- Timeframe mismatch, a daily-derived pivot and a weekly-derived pivot can disagree about the same price on the same day; a rule should specify which one governs.
- Platform formula differences, because the exact DeMark formulation isn't standardized, two platforms can plot slightly different pivot, R1, and S1 values for the same instrument and date.
Common Mistakes
- Treating a pivot touch as an automatic trade signal, the levels describe a mathematical reference point, not a guaranteed reaction.
- Assuming every platform calculates the same values, always confirm the exact formula, rounding, and session convention a specific charting tool uses before comparing its levels to another source.
- Ignoring the broader trend, a pivot-based reading taken against a strong prevailing trend can fail more often than one taken with it.
- Relying on R1/S1 alone with no invalidation level, like any support/resistance reference, a plan should define what would prove the level wrong.
- Mixing timeframes inconsistently, using a daily pivot for an intraday decision and a weekly pivot for a swing decision, interchangeably, without a stated rule for which applies when.
Limitations
DeMark pivot points are calculated entirely from one prior period's Open, High, Low, and Close. They don't independently account for volume, order-book depth, news, earnings, or broader market conditions, and a single unusual prior period can shift the levels away from what's typical for the instrument. As with other technical levels, they describe historical price relationships, not a prediction of what price will do next.
A Pivot Formula That Changes Depending on Yesterday
The DeMark calculation differs from conventional pivot methods in that the formula itself switches based on the relationship between the prior close and open. That conditionality is the point: it produces levels weighted toward the direction of the previous session rather than symmetric around a midpoint.
The practical implication is that these levels are not comparable to those from other pivot systems, and mixing them on one chart produces a cluster of nearby lines with no principled way to choose between them. Pick a method and use it consistently, or the exercise becomes drawing enough levels that price is always near one.
The mistake is assuming a level has significance because a formula produced it. Pivot levels matter to the extent that other participants watch and act on them, and a less widely used variant has correspondingly less of that self-fulfilling quality than the standard calculation.
The levels also depend on how the session is defined, which is unambiguous for exchange-traded instruments with a fixed close and arbitrary for anything trading continuously. Applied to a market with no natural session boundary, the inputs are chosen rather than given.
DeMark Pivot Points FAQs
What are DeMark pivot points?
DeMark pivot points are a pivot-point variant developed by Tom DeMark that is conditional on whether the prior period closed higher or lower than it opened, rather than always averaging the same three prices. The result is a single pivot level plus one resistance level (R1) and one support level (S1) for the next period.
How is the DeMark formula different from a standard pivot point?
A standard pivot point averages the prior period's high, low, and close the same way regardless of how the period closed. The DeMark version instead uses one of three different weighted formulas depending on whether the close was above, below, or equal to the open, so the pivot shifts toward the high after an up close and toward the low after a down close.
What determines which DeMark formula to use?
The relationship between the prior period's close and its open. If the close is below the open, X = High + 2×Low + Close. If the close is above the open, X = 2×High + Low + Close. If the close equals the open, X = High + Low + 2×Close. The pivot point is always X ÷ 4.
What are DeMark R1 and S1?
R1 is a commonly cited resistance level calculated as X÷2 minus the prior period's low. S1 is a commonly cited support level calculated as X÷2 minus the prior period's high. Unlike some pivot systems, this DeMark version is commonly presented with only one resistance level and one support level rather than a full R1, R3/S1, S3 ladder.
Is the DeMark pivot point formula standardized across platforms?
No. Tom DeMark's exact original formulation varies across secondary sources and charting platforms. The version shown here is a commonly cited one, and readers should verify the exact formula, rounding, and session convention used by their own platform before comparing levels across tools.
Can DeMark pivot points be used on any timeframe?
The calculation itself can be applied to any completed period, a prior day, week, or month, but what the resulting levels represent changes with the timeframe, and liquidity, session conventions, and typical holding period should match whichever timeframe is used.
Why does this pivot method produce only one support and one resistance level?
The calculation derives a single value from the previous period's open, high, low, and close, then splits it into one level above and one below. Other pivot methods generate multiple levels by applying successive ratios to the range. The narrower output is deliberate: the method is built around a single projected range for the coming session rather than a ladder of levels.
How does using the open in the formula change what the levels represent?
Including the open lets the calculation distinguish sessions that closed above where they opened from those that closed below, which no method based only on high, low, and close can do. The resulting levels shift depending on that relationship, so the same high, low, and close produce different pivots depending on where the session started. This makes the method more sensitive to intraday character than range-based alternatives.
Do these pivots require the previous session's data to be complete?
Yes, and this creates a practical constraint in markets without a clean session boundary. Applying the method to a continuously traded instrument requires choosing an arbitrary daily cutoff, and different platforms use different cutoffs. The resulting levels therefore differ between platforms for reasons unrelated to the formula, which is worth checking before relying on a specific level.
References
- CMT Association: Technical Analysis Body of Knowledge and Research
- CFA Institute Research and Policy Center: Investment Research
- TA-Lib: Technical Analysis Function Library Documentation
- Tom DeMark is credited with developing this conditional pivot-point variant; the exact original formulation varies across secondary sources and trading platforms, so this page presents a commonly cited version rather than a single universal standard.
- SEC Investor.gov: Introduction to Investing