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Formula to calculate resistance and support levels

PIVOT POINTS for resistance and support of a particular stock:
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…

Formula to calculate resistance and support levels.

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.

Posted by On 17/11/2009 Filed in: General Tags: , , , , , ,
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14 Responses to "Formula to calculate resistance and support levels"

  1. atul says:

    How to calculate weekly Resistance and support..is there any difference in strong resistance and strong support . pl give me or send me Formula

  2. Gajendra says:

    Please explain what are P, H, L & C given in the formula ( to calculate resistance & support levels ). Thanks.

    • kishor says:

      h=HIGH OF THE DAY L=LOW OF THE DAY C=CLOSING MARKET PRICE P=PIVOT WHICH WE WILL BE GETTING BY FIRST FORMULAE….AND AFTER THAT CALCULATE ONE BY ONE….

  3. Mayank Patel says:

    Sell nifty 5570
    Target 5015

    Nifty have to come 5015.sure.

  4. Mayank Patel says:

    Hello…… This is mayank patel.
    I am short term trader of nifty & i want support & resistance level,
    so anyone can help me?

  5. Shailesh says:

    Sell nifty with sl 5100 because strong resistant of 5100

  6. Kyla Ascher says:

    Howdy! This post couldn’t be written any better! Reading through this post reminds me of my old room mate! He always kept talking about this. I will forward this post to him. Pretty sure he will have a good read. Thank you for sharing!

  7. faizal says:

    the expansion of the letters used in the formula is to be cleared

  8. svarte says:

    The thing this article makes clear is that “resistance level” is a totally fictitious concept that is only good in hindsight. It sounds very good, applying science to the market, but the market is mass psychology, not math. If you rely on fake science you’ll always be chasing and always losing.

  9. anand says:

    Above formula is not clear. Full forms to be expanded. Examples will give better understanding.

  10. Preeti says:

    How to calculate weekly Resistance and support..is there any difference in strong resistance and strong support

  11. maulik says:

    nifty future end 5200-5100-5050 likely achive

    • sathya says:

      nifty future levels for 20th june 2011 monday

      nifty future buy above 5428 or sell below 5397
      and buy above 5364 or sell below 5333

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