Pivot Point Formula?

Discussion in 'Trading' started by El Cazador, Jun 17, 2002.

  1. El Cazador

    El Cazador

    I have searched everywhere but can't find the formula including Support 3 and Resistance 3 in Pivot Points derived from yesterday's HLC. Can anyone point me to the correct formula? Thanks

    ~EC
     
    #1     Jun 17, 2002
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  2. El Cazador

    El Cazador

    #2     Jun 17, 2002
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  3. josbarr

    josbarr

    Pivot point (P) = (H + L + C) / 3 First resistance level (R1) = (2 *
    P) - L First support level (S1) = (2 * P) - H Second resistance level
    (R2) = P + (R1 - S1) Second support level (S2) = P - (R1 - S1)

    where H, L, C are the previous day's high, low and close,
    respectively.

    PS Some traders use the open on this as well.


    jbarry@proedgeonline.com
     
    #3     Jun 17, 2002
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  4. El Cazador

    El Cazador

    Thanks for the response but the part I was lacking was the 3rd level of support and resistance. Seems like there is considerable variance in how it is calculated.
     
    #4     Jun 17, 2002
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