By determining a stock’s support, pivot, and resistance levels, we can infer its future movement.

We were all familiar with the terms “support,” “pivot,” and “resistance” of stock but were unaware of how to calculate these numbers. Additionally, these variables have a significant impact on a specific stock’s unusual daytime movement. By determining a stock’s support, pivot, and resistance levels, we can infer its future movement, but we must base our assessments on the data from the previous day. Anyway, enjoy learning the straightforward formula for calculating these numbers.

PIVOT POINT = ( LOW + HIGH + CLOSE ) / 3

SUPPORT 1 = ( PIVOT x 2 ) – HIGH

SUPPORT 2 = PIVOT – ( HIGH – LOW )

SUPPORT 3 = LOW – { 2 x ( HIGH – PIVOT ) }


RESISTANCE 1 = ( PIVOT x 2 ) – LOW

RESISTANCE 2 = PIVOT + ( HIGH – LOW )

RESISTANCE 3 = HIGH + { 2 x ( PIVOT – LOW ) }

Please keep in mind that these levels are rarely observed under extreme circumstances, such as breaking news or events involving a certain stock. So, these are primarily applicable to normal market conditions only.