In the world of trading we often hear or see the word Pivot Point, Support and Resistance. However, if we know how to calculate and use it?. Here's how I write, and calculate the Pivot point, support and resistance.
Pivot Point
Is how the calculation for determining the Support (under the limit) and Resistance (limit up). Is the result of the division's point of Answer (open), the highest price (high), the lowest price (low), and the closing price (close) the transaction the previous day. Pivot point is valid since pk.0.00 (12 nights) or around the time the server pk.4.00 WIB (GMT +7) s / d pk.23.59.
-> Pivot Point = (Open + High + Low + Close) / 4
Support
Is the bottom line on the day the transaction is expected when the price reaches the support sdh, the price will be turned back over. However, when a strong trend decline, the price / trend will penetrate the first line support (Sup.1) towards the next support line (Sup.2).
-> Support 1 = (2 x Pivot Point) - High
-> Support 2 = Pivot Point - (High - Low)
Resistance
Is the line up on the day the transaction is expected when the price reaches the sdh resistance, then the price will turn back down. However, when the rising trend menguat, the price / trend line resistance will be cut through the first (Res.1) Resistance to the next line (Res.2).
-> Resistance 1 = (2 x Pivot Point) - Low
-> Resistance 2 = Pivot Point + (High - Low)
So how to use and calculate the Pivot point, support and resistance from me, I hope can be useful for all prospective trader / investor.
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