Formula to calculate resistance and support levels.

Discussion in 'Technical Analysis' started by yankie, Oct 1, 2005.

  1. yankie

    yankie Member

    Joined:
    Jun 23, 2005
    Messages:
    87
    Likes Received:
    0
    Trophy Points:
    6
    hereunder I am giving the formula for calculating
    PIVOT POINTS for resistance and support of a
    particular stock:

    PIVOT POINT = PP

    H = PREVIOUS DAYS HIGH
    L = PREVIOUS DAYS LOW
    C = PREVIOUS DAYS CLOSE

    PIVOT POINT: PP = H+C+L / 3

    FIRST RESISISTANCE : R1 = 2PP - L
    FIRST SUPPORT : S1 = 2PP - H
    SECOND RESISTANCE : R2 = 1PP + H - L
    SECOND SUPPORT : S2 = 1PP - H + L

    tell me how do u find it?I NEED REPLY FOR THIS ON HOW IT IS WORKING.

    DO ADD REPS
     
  2. yankie

    yankie Member

    Joined:
    Jun 23, 2005
    Messages:
    87
    Likes Received:
    0
    Trophy Points:
    6
    Re: formula for how to calculate resistance and support levels.

    Everyone Reading This Should Tell Me Did I Do A God Job?
     
  3. AMITBE

    AMITBE Well-Known Member

    Joined:
    Mar 1, 2005
    Messages:
    2,884
    Likes Received:
    646
    Trophy Points:
    113
    Re: formula for how to calculate resistance and support levels.

    Hello yankie,
    I don't know about the God Job, for that matter I'm not even too certain about a good job. ;)
    Ok, keep in mind that pivot points are short-term, over-night trend indicators, useful for only one day at a time. They need to be recalculated every day using the changing price movement.
    When you are coming in with a bunch of calls, you need to study the historical data for each stock, determin the direction of the trend, it's strength, buying interest, liquidity, historical supports and resistances (which the pivots R1 S1 etc do not povide), etc etc...For each of the above there is a combination of indicators that need to be studied, compared and analysed, entry and exit levels determined, and in a progressing trade, trailing stops need to be detemined etc etc etc...
    As for your formula, the proper way of writing it would be:
    P = (H + L + C) / 3
    R1 = (P x 2) - L
    R2 = P + (H - L)
    S1 = (P x 2) - H
    S2 = P - (H - L)
    But for making calls for short, mid, long term trades, do not depend on the formula. Do an in depth study.
    Good wishes.
     
    csreekanthp likes this.
  4. phoenix

    phoenix Member

    Joined:
    May 19, 2005
    Messages:
    207
    Likes Received:
    9
    Trophy Points:
    18
    Re: formula for how to calculate resistance and support levels.

    Superb reply,Amit.Excellent.......

    Phoenix :cool:
     
    csreekanthp likes this.
  5. xtiger

    xtiger Member

    Joined:
    Aug 31, 2005
    Messages:
    78
    Likes Received:
    0
    Trophy Points:
    6
    Re: formula for how to calculate resistance and support levels.

    Only expert can comment on this. Different people may have different opinion. If this formula works for you thats fine. Everyone should have his own Trading plan.
     
  6. phoenix

    phoenix Member

    Joined:
    May 19, 2005
    Messages:
    207
    Likes Received:
    9
    Trophy Points:
    18
    Re: formula for how to calculate resistance and support levels.

    I am not too sure if you did a God Job..... ;)
     

  7. karthikmarar

    karthikmarar Well-Known Member

    Joined:
    Jul 3, 2005
    Messages:
    1,527
    Likes Received:
    1,140
    Trophy Points:
    113
    Location:
    kuwait
    Re: formula for how to calculate resistance and support levels.

    Looks like this weekend is being celebrated as FUN Weekend..... :D :D
     
  8. Saint

    Saint Banned

    Joined:
    Jul 28, 2004
    Messages:
    8,784
    Likes Received:
    13,307
    Trophy Points:
    113
    Re: formula for how to calculate resistance and support levels.

    Karthik,

    :D :D :D

    Saint
     
  9. JIMMtrader

    JIMMtrader Member

    Joined:
    Sep 28, 2004
    Messages:
    44
    Likes Received:
    0
    Trophy Points:
    6
    Re: formula for how to calculate resistance and support levels.

    GoD Job?
    No my friend, This cannot be certified as a gOd Job!

    But surely, for the newbies seeking knowledge, it has been an eyeopener on the formulae for R1/2 & S1/2, aptly corrected with logical comments by the seniors here.
     
  10. kaka

    kaka Member

    Joined:
    Aug 17, 2005
    Messages:
    40
    Likes Received:
    3
    Trophy Points:
    8
    Location:
    Ulhasnagar
    Re: formula for how to calculate resistance and support levels.

    wat is this thread doing in the equities section
     
Loading...

Share This Page