# Formula to calculate resistance and support levels.

 Discuss Formula to calculate resistance and support levels. at the Technical Analysis within the Traderji.com; hereunder I am giving the formula for calculating PIVOT POINTS for resistance and support of ...

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#1
1st October 2005, 06:13 PM
 Member Join Date: Jun 2005 Posts: 87 Thanks: 0 Thanked 0 Times in 0 Posts
Formula to calculate resistance and support levels.

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.

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#2
1st October 2005, 06:16 PM
 Member Join Date: Jun 2005 Posts: 87 Thanks: 0 Thanked 0 Times in 0 Posts
Re: formula for how to calculate resistance and support levels.

Everyone Reading This Should Tell Me Did I Do A God Job?
#3
1st October 2005, 07:51 PM
 Member Join Date: Mar 2005 Posts: 2,884 Thanks: 94 Thanked 642 Times in 182 Posts
Re: formula for how to calculate resistance and support levels.

Quote:
 Originally Posted by yankie Everyone Reading This Should Tell Me Did I Do A God Job?
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.
 The Following User Says Thank You to AMITBE For This Useful Post: csreekanthp (22nd June 2010)
#4
1st October 2005, 08:04 PM
 Member Join Date: May 2005 Posts: 207 Thanks: 46 Thanked 3 Times in 3 Posts
Re: formula for how to calculate resistance and support levels.

Quote:
 Originally Posted by AMITBE 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.

Phoenix
 The Following User Says Thank You to phoenix For This Useful Post: csreekanthp (7th June 2010)
#5
1st October 2005, 08:11 PM
 Member Join Date: Aug 2005 Posts: 78 Thanks: 0 Thanked 0 Times in 0 Posts
Re: formula for how to calculate resistance and support levels.

Quote:
 Originally Posted by yankie Everyone Reading This Should Tell Me Did I Do A God Job?
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
1st October 2005, 08:13 PM
 Member Join Date: May 2005 Posts: 207 Thanks: 46 Thanked 3 Times in 3 Posts
Re: formula for how to calculate resistance and support levels.

Quote:
 Originally Posted by yankie Everyone Reading This Should Tell Me Did I Do A God Job?
I am not too sure if you did a God Job.....
#7
1st October 2005, 09:47 PM
 Member Join Date: Jul 2005 Location: kuwait Posts: 1,527 Thanks: 75 Thanked 1,122 Times in 193 Posts
Re: formula for how to calculate resistance and support levels.

Quote:
 Originally Posted by yankie Everyone Reading This Should Tell Me Did I Do A God Job?
Looks like this weekend is being celebrated as FUN Weekend.....
#8
1st October 2005, 09:53 PM
 Banned Join Date: Jul 2004 Posts: 8,784 Thanks: 1,145 Thanked 13,330 Times in 2,393 Posts
Re: formula for how to calculate resistance and support levels.

Karthik,

Saint
#9
1st October 2005, 10:34 PM
 Member Join Date: Sep 2004 Posts: 44 Thanks: 0 Thanked 0 Times in 0 Posts
Re: formula for how to calculate resistance and support levels.

Quote:
 Originally Posted by yankie Everyone Reading This Should Tell Me Did I Do A God Job?
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
1st October 2005, 10:40 PM
 Member Join Date: Aug 2005 Location: Ulhasnagar Posts: 40 Thanks: 19 Thanked 3 Times in 2 Posts
Re: formula for how to calculate resistance and support levels.

wat is this thread doing in the equities section

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