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To: Kevin who wrote (27383)	10/29/1997 4:57:00 PM
From: Ira Player	Read Replies (1) of 58727

Kevin, A few questions about the math in your post. Also, where did this originate? You said: Here are the formulas to calculate S&R points: P = PIVOT H = HIGH (PREVIOUS DAY) L = LOW (PREVIOUS DAY) C = CLOSE (PREVIOUS DAY) R1 = RESISTANCE LEVEL 1 S1 = SUPPORT LEVEL 1 R2 = RES #2 R3 = RES #3 S2 = SUPP #2 S3 = SUPP 3# FORMULA1 P = (H + L + C) / 3 FORMULA2 R1 = 2P - L FORMULA3 S1 = 2P - H FORMULA4 R2 = (P-S1) + R1 FORMULA5 S2 = P - (R1 - S1) FORMULA6 R3 = R2 + RANGE FORMULA7 S3 = R2 - RANGE And Richard C. Walsh suggested FORMULA7 should read S3 = S2 - RANGE (I assume he is right) Also, I assume RANGE = H - L. Questions and comments: FORMULA1 Why don't you consider the OPEN in the PIVOT? While not as strong an indicator as CLOSE, it does provide information on sentiment. FORMULA2 Old habit of mine. Why not present as R1 = P + (P - L)? This shows more clearly that the intent is to position R1 above the PIVOT by the same amount that the PIVOT is above the low. (the reflection of the LOW above the PIVOT) FORMULA3 Ditto old habit. S1 = P + (P - H). Support is at reflection of the HIGH about the PIVOT. FORMULA4 If you expand the formula you get: R2 = (P - (2P - H)) + (2P - L) A little reduction and substitution and you have: R2 = (-P + H + 2P - L) = P + (H - L) = P + RANGE Letting people know that R2 is the previous days range above the PIVOT is much less cryptic. FORMULA5 Ditto the reduction. S2 = P - RANGE FORMULA6 From above R3 = R2 + RANGE = P + 2RANGE FORMULA7 From above S3 = S2 - RANGE = P - 2RANGE With all comments made, I feel a more intuitively presented set of formulas are: FORMULA1 P = (O + H + L + C) / 4 FORMULA2 R1 = P + (P - L) FORMULA3 S1 = P + (P - H) FORMULA4 R2 = P + RANGE FORMULA5 S2 = P - RANGE FORMULA6 R3 = P + 2RANGE FORMULA7 S3 = P - 2*RANGE Don't intend to snipe and nit pick. But understanding the math and systems people use is difficult in and of itself. Nature made things complicated enough . Ira

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