FORMULA FOR SUPPORT AND RESISTANCE LEVELS

 

 

After reading my article on Swing Trade, many readers ask for some help in swing trade. Here is a formula for finding out Crucial levels, Support levels, Resistance levels of stocks for a trading day. Everyday evening you should update it. Calculate this formula once the market is closed. These levels are applicable for the next day trading. Consider all end values as positive values.

 

DOWNLOAD THE FORMULA FOR SUPPORT AND RESISTANCE LEVELS IN MICROSFT EXCEL FOR FREE---- JUST CLICK HERE

EXPLAINING THE FORMULA AS GIVEN BELOW

Step 1. Find the crucial level of the stock for next trading day

Crucial Level = (Days High Price + Days Low Price + Close Price)/3

Step 2. Find support and resistance levels by using Crucial level for next trading day

Support 1 = (Crucial Level x 2) - Days High Price
Support 2 = Crucial Level – Days High Price+ Low Price
Support 3 = (Days Low Price - 2) x (Days High Price- Crucial Level)
Resistance 1 = (Crucial Level x2) - Days Low price
Resistance 2 = Crucial Level +High Price-Low Price
Resistance 3 = High Price + (2 x (Crucial Level -Low Price))

Advantages of these formulas
Identify trading levels
Can use in intraday and swing trading

Disadvantages of these formulas
Volumes are not under consideration
These levels not obey the Index movement, so traders must be cautious on movement of Index

Apply and give me comment on these formulas

 

Thanks for reading

DOWNLOAD THE FORMULA FOR SUPPORT AND RESISTANCE LEVELS IN MICROSFT EXCEL FOR FREE---- JUST CLICK HERE

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