Formula to calculate resistance and support levels.

#21
Re: formula for how to calculate resistance and support levels.

Awesome. For those that do use these to day trade, can you offer some tips?

For example, where do you trigger a trade, ie at what distance from the parameter?
If support is 1000 do you buy at 1001 or 1002?

thank you
 

fahed

Active Member
#24
I know how to calculate Support and Resistance with previous day high and low and close, Is there a method to find out how calculate support and resistance with today's values, because some times market open with a huge gap up or down.
 
#25
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.
ok dear amitbe how to way of depth study?
 
#26
yeah, Pivot point is the time tested calculator for intraday's movement. But the very tricky thing is what to do at R1? will it goes up to test R2 or will it be back to S1?
This requires a lot of experiance, usage of some trendlines and chart patterns.
As a nifty fno trader, i update my site with nifty intraday chart using pivot table, trendlines and chart patterns. you may visit xxxxxxxxxxxxxxx to understand how i intecept the chart. it will be updated every evening.
 
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#27
Re: formula for how to calculate resistance and support levels.

Hi

I have written a program to auotomatically place buy and sell order in my PIB(indiabulls software).My software will palce buy order if scrips price
is above (pivotpoint+R1)/2 .if bought it will immediately place a sell order for
one rupee gap(brokerage + 1 rupee gap).My software places orders in more than 200 companies with a constant qty of 20.
i want to improve the sucess rate .Any good idea from u friends.
Dear Sirji can u pl xplain d logic behind [PP+R1]/2 Is this PP is calculated as per the std Pivot formula pl explain.Thanks
 
#28
Great job Yankie!


Are there additional formulas to calculate R3, S3 or even R4, S4?

As another member has said, there are days when the market really gaps up or down out of range of these trigger points.

thank you.
 
#29
Re: formula for how to calculate resistance and support levels.

hi,

can anyone tell me what will be the method if we want the resistance level for longer holding?

if find the resistance*level in % terms, can i use it for more than a day i.e. one week without updating the database?

is there any formula where it take volatility in consideration?

thanks
 

veluri1967

Well-Known Member
#30
Great job Yankie!


Are there additional formulas to calculate R3, S3 or even R4, S4?

As another member has said, there are days when the market really gaps up or down out of range of these trigger points.

thank you.
As of now, there is no way out to find R4, S4.... may be camarilla pivots may be of some help..

Otherwise.... try NR7 setup by AW-10
 

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