Posted by forex at 5:39 AM
Read our previous post
Its All About The Numbers
1. Find the open, high, low and close for the stock you are following and then plug those figures into the stock pivot calculator. The center pivot will be calculated as the stock price High + Low + Close/3. This will serve as your baseline which the other pivots will stem from. Mark that level down on your notepad.
2. Plug the price data for the stock's open, high, low and close into the stock pivot calculator to calculate the pivot support levels. There are three pivot support levels, S1, S2, and S3. The formula for the S1 pivot support level is 2 X Pivot - High. The formula for the S2 pivot support level is Pivot - (High - Low). The formula for the S3 pivot support level is S1 - (High - Low). Mark these levels down as your areas of support on a notepad.
3. Use the price data of the open, high, low and close for the stock you are following and plug those figures into the stock pivot calculator. There are three pivot resistance levels: R1, R2, and R3. The formula for the R1 pivot resistance level is 2 X pivot - low. The formula for the R2 pivot resistance level is pivot + (high - low). The R3 pivot resistance level is R1 + (high - low). Mark these levels down as your areas of resistance on a notepad.
4. Mark all thes price levels down on a chart that has the stock charted on it and be sure to identify each pivot on your chart. You now have all the support and pivot levels for the stock you are tracking using the stock pivot calculator.