New Trader: Journal

Is Trade Prospector a java applet on a website or a standalone? Not familiar with it as I use TC2000 for EOD review and prospects, then Cyber for intraday data and trading. But quickly calculated S/R sounds verrrrrrrry useful.
 
Magna, I'm not sure that it is worth buying a program to calculate support and resistance levels. I have an excel spreadsheet that does it and I notice that the 1st levels of support and resistance are usually within pennies of the high and low of the previous day. Take BRCD for example... last night I plugged it into the formula and it spit out a likely resistance of 44.81 it had a high yesterday of 45.10 no big difference. It hit 44.80 and a few cents, put in a few matching shadows and then dropped 60 cents in a couple of minutes. Useful? You bet... but I think I could have made the same short based on yesterday's high.
 
mc_a98:
I'd recommend that you don't trade in July and August. Summer months are notoriously difficult due to lack of volume and (often) trend. My personal trading records indicate that summer months are the worst (for me), and I now only trade lightly in June,July and August. Actually, I probably will not even trade in August. Time off is good for you anyway :)

 
El,

Thanks for the tip. Question: what formulas do you use in your Excel spreadsheet to calculate support and resistance. While previous days hi and lo might be close, it would be very interesting to "tighten" it up a bit if all it took was a formula. With TC2000 I can export any stocklist I create into Excel (along with Open, Hi, Lo, Close, etc.) so that gives me the raw data I would need in Excel.
 
Magna, try these out:


PP = [H + L + C]/3
R1 = PP + [(H - L)/2]
S1 = PP - [(H - L)/2]


PP - Pivot Point
R1 - Resistance
S1 - Support

The CBOE formula is longer and you can calculate 2 or 3 support and resistance levels but one is usually plenty.

 
El,

Thanks for the formulas (formulii?).

> The CBOE formula is longer and you can calculate
> 2 or 3 support and resistance levels

As I spend alot of time in Excel and like to tinker around, I would also be interested in the CBOE version if you wouldn't mind posting it.
 
Magna
This will caculate two levels.
Pivot point = P = (H + L + C)/3
First area of resistance = R1 = 2P - L
First area of support = S1 = 2P - H
Second area of resistance = R2 = (P -S1) + R1
Second area of support = S2 = P - (R1 - S1)
 
Here is a variation that is said to help with overnight gaps by weighting the Pivot Point with the current open.

PP = (H+L+C+Todays Open)/4

I have no experience with this, but a trader I know seems to prefer it to the traditional formula.
 
You must log in or register to reply here.
Back
Top