How do we calculate our support and resistance levels?
At the end of every session we look at all relevant aspects of the prevailing price dynamics.
There are up to hundreds aspects of the price action on any day which we review, including things such as:
The size of the day's rally/fall
Any sequences of gains or losses
The cumulative price action by a particular stage of the week
4 Step Process
- Having identified which price dynamics are applicable, we then use our databases to help us calculate what happened next after we have seen this price action in the past
- We look for common areas of support and resistance which have characterised the price action in the past
- We identify one aspect of the price action which is representative of the aggregate picture
- We send you an alert as the market approaches this level, highlighting the level and why it is important