How to know Resistance, Support and Stop Loss levels for a stock

abhinkoi · #1 26th November 2006, 08:06 PM

Dear All,

I am trying to learn TA but feels like I am pretty novice in it. Need help of all the senior members and fellow boarders to know Resistance, Support and Stop Loss levels for a stock or Nifty.

I am using Amibroker and using 3-5 EMA to know buy/sell signal. It works well most of the times but I am not able to understand how to make sure whats the correct resistance, support and SL level.

Please help me knowing this.

Thanks in advance to all of you !

Cheers
Abhinav

Salvia · #2 27th November 2006, 08:56 AM

Hi Abhinav

I don´t think there are any absolute levels that are there all the time as far as i know. If they became to known people would trade them earlier and earlier and move them.

I have been thinking of how to find stop levels as well. To find supply/demand levels that are very important

kurian · #3 27th November 2006, 09:37 AM

haii
support and resistance levels r associated with big volumes.
so of price r below these levels more selling come whn it reach theselevels
so price find it diffiult to penetrate thee levels.

s &r r can be previous low,high, fibonacci levels etc.
when u watch daily eod charts pls draw trend line conjestion areas and previous high and lows and u can see how price react to these levelss.

if u watch nifty eod 3596 level in september was a mild resistance .once
penetrated it it will act as support pls watch for s&r in eod charts and
see how prices react ok...
edward and magee's techinical analysis of stock trends is very good book
for chart analysis pls read the chapter on support and resistance

kurian

Quote:

Originally Posted by abhinkoi

Dear All,

I am trying to learn TA but feels like I am pretty novice in it. Need help of all the senior members and fellow boarders to know Resistance, Support and Stop Loss levels for a stock or Nifty.

I am using Amibroker and using 3-5 EMA to know buy/sell signal. It works well most of the times but I am not able to understand how to make sure whats the correct resistance, support and SL level.

Please help me knowing this.

Thanks in advance to all of you !

Cheers
Abhinav

abhinkoi · #4 27th November 2006, 12:34 PM

Thanks a ton for the messages. I will try this.
Is there anything else we can check by the way.

ccitrader · #5 27th November 2006, 06:34 PM

observe the various patterns of various CCI & CANDLE,

u can find accurate S & R,

good luck,

ccitrader

higoofy · #6 29th November 2006, 12:47 PM

Here a simple formula. You can create it in excel sheet also. You can use daily, weekly or month H,L, and C depending on your investment time frame

Pivot(P) =(H + L + C)/3

---------------------------------------
Resistance Level 1 (R1) =(2*P) - L
Resistance Level 2 (R2) =(P - S1) + R1
Resistance Level 3 (R3) =(P - S1) + R2
Resistance Level 4 (R4) =(P - S1) + R3
---------------------------------------
Support Level 1 (S1) =(2*P) - H
Support Level 2 (S2) = P - (R1 - S1)
Support Level 3 (S3) = P - (R2 - S1)
Support Level 4 (S4) = P - (R3 - S1)

lohiya · #7 29th November 2006, 01:26 PM

Quote:

Originally Posted by higoofy

Here a simple formula. You can create it in excel sheet also. You can use daily, weekly or month H,L, and C depending on your investment time frame

Pivot(P) =(H + L + C)/3

---------------------------------------
Resistance Level 1 (R1) =(2*P) - L
Resistance Level 2 (R2) =(P - S1) + R1
Resistance Level 3 (R3) =(P - S1) + R2
Resistance Level 4 (R4) =(P - S1) + R3
---------------------------------------
Support Level 1 (S1) =(2*P) - H
Support Level 2 (S2) = P - (R1 - S1)
Support Level 3 (S3) = P - (R2 - S1)
Support Level 4 (S4) = P - (R3 - S1)

Joy da n San u rmbr yesterday's chat.... we were talking upto r2/s2/r3/s3... here there are r4/s4 as well

darsh_goswami · #8 29th November 2006, 05:44 PM

Quote:

Originally Posted by abhinkoi

Dear All,

I am trying to learn TA but feels like I am pretty novice in it. Need help of all the senior members and fellow boarders to know Resistance, Support and Stop Loss levels for a stock or Nifty.

I am using Amibroker and using 3-5 EMA to know buy/sell signal. It works well most of the times but I am not able to understand how to make sure whats the correct resistance, support and SL level.

Please help me knowing this.

Thanks in advance to all of you !

Cheers
Abhinav

Dear Abhinav,..

As Nifty is trading in to the new zone now adays .. Its abit difficult to find out the exact levels of resistance . ya definately u can use fibo levels to guess sup n res.

or u can learn more @ jaykiru's thread...

If any doubts about Nifty.. msg me...

Regards,..
Darsh

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