Method to Calculate Pivot Point for Stock Trading Analysis in Excel

    Posted by Ashish Sankhla on 1

    pivot point support resistance
    Many day traders of stocks and currency want to calculate support and resistance by itself during the trading session .
    For those self driven players pivot trading is one of the simple and easiest technical tools for finding the support and resistance level for any traders or newbie in stock commodity or forex market trading.
    Pivot point trading strategies are also used by the institutional players in the financial market.

    What Are Pivot Points ?

    Pivot points are major support and resistance levels where there likely to be a retracement of price used by traders to objectively determine potential entry and exit levels of underlying assets.
    Pivot point breaks can be an entry marker, confirmation of trend direction also confirmation of trend reversal -exit marker.
    These retracement calculation is based on the last day trading data as we follow the market open, high, low, close on every day.You can also calculate these pivot level on weekly basis. For weekly pivot you need to weekly high, low, and close prices.

    Pivot Point Formula

    One of the best thing about the pivot point is the ease of their calculation and after that you will get 3 point of resistance and 3 point of support for the underlying stocks/assets.To calculate pivot point yourself you

    • Pivot Point = (Day's High Price + Day's Close + Day's Close)/3
    • Support-1 = (Pivot Point * 2) - Day's High
    • Support-2 = Pivot Point - (Day's High - Day's Low)
    • Support-3 = Day's Low - 2 *(Day's High - Pivot Point)
    • Resistance-1 = (Pivot Point * 2) - Day's Low
    • Resistance-2 = Pivot Point + ( Day's High - Day's Low)
    • Resistance-3 = Day's High + 2 *( Pivot Point - Day's Low)

    If you have facing difficulty to calculate these level so no worry we have developed ready to use excel sheet only for our readers.

    DownloadPivot Point Calculator For Nifty & Bank Nifty (Excel 2003 version)

    DownloadPivot Calculator For Nifty & Bank Nifty (Macro Enabled 2007)

    Even if you are not familiar with excel so you can use our online trading calculator for finding the proper trend of underlying assets/stocks.

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    1 comment:

    1. How can I create automated pivot calculator in excel like you did. I want to extend your technique to include few other indices and stocks. Can you explain in detail?



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