|
Add Reply New Topic |
Calculate support and Resistance yourself |
Oct 27, 2009, 07:58 AM
Post
#1
|
||
Group: Members Posts: 8 Joined: October 27, 2009 Member No.: 290 |
Oct 27, 2009, 07:58 AM
Post
#1
|
What is Support?
Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell. By the time the price reaches the support level, it is believed that demand will overcome supply and prevent the price from falling below support. Support does not always hold and a break below support signals that the bears have won out over the bulls. A decline below support indicates a new willingness to sell and/or a lack of incentive to buy. Support breaks and new lows signal that sellers have reduced their expectations and are willing sell at even lower prices. In addition, buyers could not be coerced into buying until prices declined below support or below the previous low. Once s What is Resistance? Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic dictates that as the price advances towards resistance, sellers become more inclined to sell and buyers become less inclined to buy. By the time the price reaches the resistance level, it is believed that supply will overcome demand and prevent the price from rising above resistance. Resistance does not always hold and a break above resistance signals that the bulls have won out over the bears. A break above resistance shows a new willingness to buy and/or a lack of incentive to sell. Resistance breaks and new highs indicate buyers have increased their expectations and are willing to buy at even higher prices. In addition, sellers could not be coerced into selling until prices rose above resistance or above the previous high. Once resistance is broken, another resistance level will have to be established at a higher level. How to Calculate? Pivot = (High Point + Low Point + Close Point) / 3 (example) Range = High Point - Low Point 3R [3rd Resistance] = 1R + Range 2R [2nd Resistance] = Pivot + Range 1R [1st Resistance] = Pivot + (Pivot - Low) H [Yesterday's High] P [Pivot Price, i.e. Midpoint] L [Yesterday's Low] 1S [1st Support] = Pivot - (High-Pivot) 2S [2nd Support] = Pivot - Range 3S [3rd Support] = 1S |
|
Nov 11, 2009, 06:25 PM
Post
#2
|
||
Group: Members Posts: 1 Joined: November 11, 2009 Member No.: 345 |
Nov 11, 2009, 06:25 PM
Post
#2
|
Albert,
Hello and thank you for posting this calculation. When calculating the Pivot's High, low and closing point.(for resistance) Is that for the current day? And then is support calculated using yesterday's high/lows? Thanks so much! Donnie |
|
Nov 16, 2009, 06:17 PM
Post
#3
|
||
Group: Members Posts: 23 Joined: July 2, 2009 Member No.: 57 |
Nov 16, 2009, 06:17 PM
Post
#3
|
very interesting information, thank you.
|
|
Dec 19, 2013, 05:57 PM
Post
#4
|
||
Group: Members Posts: 26 Joined: December 12, 2013 Member No.: 23,431 |
Dec 19, 2013, 05:57 PM
Post
#4
|
very good information about support and resistance level thanks dear.
|
|
Dec 30, 2013, 04:45 AM
Post
#5
|
||
Group: Members Posts: 1 Joined: December 30, 2013 Member No.: 23,550 |
Dec 30, 2013, 04:45 AM
Post
#5
|
very good and clear calculation about support and resistance level thanks |
|
Mar 9, 2014, 07:42 AM
Post
#6
|
||
Group: Members Posts: 29 Joined: March 8, 2014 Member No.: 24,129 |
Mar 9, 2014, 07:42 AM
Post
#6
|
Thanks it is good and the best information about the support and the resistance and there are the good method to calculate the point
|
|
Add Reply |
|
Financial services provided by InstaForex Companies Group © 2008-2024 |
InstaForexTM is a registered trademark of InstaForex Group
|