Learn Day Trading

Traders in the financial markets have many different methods of calculating support and resistance levels. One of these methods is known as the “floor traders pivot points”. These levels were used by floor traders on the commodity exchanges to calculate potential areas of support and resistance. Additionally, many trading systems and approaches make use of these levels.

These pivot points are easily calculated numbers that are supposed to indicate where support and resistance levels may occur. Of course you can’t just buy and sell every time the price touches these levels, but it is useful to have the same numbers that other traders are looking at. They are simple to calculate with a pen and paper, but a calculater will help you do this faster.

Although these levels are usually calculated off of a daily bar, they can also be calculated off of any other time frame, such as weekly, monthly or yearly.

The calculations are figured using the high, low and closing prices of the previous time frame. The first step is to figure out the “Pivot”, and then you can figure out the other levels.

Pivot = (High+Low+Close)/3

Resistance 1(R1) = (Pivot*2)-Low
Resistance 2(R2) = Pivot+High-Low

Support 1(S1) = (Pivot*2)-High
Support 2(S2) = Pivot+Low-High

If you need to calculate additional support and resistance levels:

First calculate R2-S1; then calculate R1-S2. The smaller of these two figures we will refer to as Ext1 and the larger one as Ext2.

Resistance 3=Pivot+Ext1

Resistance 4=Pivot+Ext2

Support 3=Pivot-Ext1

Support 4=Pivot-Ext2

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About the Author:
Former futures broker and Trading Desk Manager. I have developed many trading systems and methods in addition to those that I have picked up from top traders over the years.
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Approximately all exchanges are offering online trading facility To day online trading is passion, so many people doing online trading with out guidance and proper knowledge, and also they loosing money and Time  this points  make you  a better online trader  this points derived from my own experience from past 10years

 1)First  you have to maintain your broker/sub-broker  address and phone numbers with you.

 2) You should know about your trading terminal order punching, order book,(buy/sell order book, stop loss order )

 3)don’t confuse similar pronunciation stock ticker(stock name)Ex-unitech-    ultratech,uniontech ,gvk-tajgvk  Grasim-gasim

 4) maintain different market watches for equity segment ,derivatives segmentOne of my client had buy future trade instead   of   equity stock

5) Don’t share your stock market online trading passwords, usernames with other personsAnd don’t  do  online  trade in internet café and public places(One of my client forget to logout his terminal in a café, he got loss $4000 in a single day)

 6) Don’t follow rumors un-known persons phone calls,e-mails&sms. Some people maintaining    trading people database and they targeting to speculation and trap the people

 7) Avoid phone-trading (call trading)   with out observation of market. 

 8) Maintain stop loss order for high volatile stock, maintain stop loss when you are going to out of the trading screen one client made loss $600 at his lunch time 

 9) Avoid panic withdraw from trades

 10) Don’t take over exposure form your money

 11) Money management is the heart of online trading, don’t put your 100% capital in a single time or single trade, and maintain and prepare good portfolio  

Welcome For Great Comments

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About the Author:
this telika ramu from india
iam professional stock market trainer from past 10years
iam maintaing  to websites
www.telikaramu.hpage.com
www.stockmarketeducations.com
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