Bad idea to use pivots when you are playing with penny stocks. You are dealing with the range (high-low) of only 8 cents. Use pivots with normal stocks.
For example lets take stock XYZ:
High: $51.50
Low: $49.75
Close: $50.50
You should get the following pivots:
R3: 53.17
R2: 52.33
R1: 51.42
PP: 50.58
S1: 49.67
S2: 48.83
S3: 47.92
Now, these levels can be used as support and resistance. It is now up to you to decide which levels you want to trade at. Will you fade these levels? Or will you play a breakout of these levels?
The PP is probably the most important pivot. Followed by the R1,S2 then R3,S3 and lastly the R2,S2 pivots. If you choose to use midpoints, simply divide the pivots in half.
I also use weekly and monthly pivots as well. Just get the weekly high,low,close and the monthly high,low,close and use the same formula.
Pivot points are not the holy grail or an exact science. This is one kind of methodology that traders use. Hope this helps.
Quick Note: I use a slightly different formula from the classic and woodies. I just updated this page so please take a look:
http://www.traderslaboratory.com/for...t=pivot+points