dbphoenix Elite Member Registered: Sep 2002 Posts: 4243 04-16-04 10:33 AM Determine those levels at which the stock has found support or resistance in the past. ...................................................................................................... What historic timeframe do you use ?
Depends on the bar interval. There's no reason to go back months if you're trading a 5m bar. Plus highs and lows that are evident on intraday charts may not even appear on daily charts.
These are probably the most common formulas: [Formula 1] (H+L+C)/3=P [2] (2)(P)-L=R1 [3] (2)(P)-H=S1 [4] (P-S1)+R1=R2 [5] P-(R1-S1)=S2 P=Pivot___ R1=Resistance Level 1 H=High(previous day)___ S1=Support Level 1 L=Low (previous day)___ R2=Resistance Level 2 C=Close (previous day)___ S2=Support Level 2
If it's pivot levels you're interested in, there are two threads under Trading. Just do a Search using "pivot". However, the pivots do not necessarily provide S/R.
On a scale from 1 to 10....how important are S/R levels in your trading? Thank you for your responses....