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# Support and Resistance Levels

Discussion in 'Trading' started by libertad, Apr 16, 2004.

What is the best method for calculating support and resistance levels?

2. ### ig0r

guess and check?

3. ### dbphoenix

Determine those levels at which the stock has found support or resistance in the past.

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 ?

5. ### dbphoenix

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.

6. ### SumJurk

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

7. ### dbphoenix

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....

9. ### sulong

On a scale from 1 to 10....how important are S/R levels in your testing?

10. ### abogdan

"0" Ooops, its not on your scale

#10     Apr 16, 2004
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