# How to calculate pivot point support and resistance

In this article I will discuss how to calculate support and resistance level easily with excel or Openoffice / LibreOffice Calc. This is another important thing, you really need to calculate the resistance and support level of a stock before you invest or trade.

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Why do I need to calculate Support and Resistance level?
Calculating support and resistance is a part of technical analysis. Support and resistance level can not tell you what will exactly happen in next trading session. Although support and resistance level give you a fair picture of a stock's next move. Support and resistance level is considered as maximum points, that means if support or resistance level calculated 100, in this case the stock price might not increase/decrease beyond that level. Usually stock price changes lesser than calculated support and resistance level, however sometimes the price might go beyond calculated support and resistance level .

What  are the values do I require to calculate support and resistance level?
You need open, high, low, close values of a stock to calculate support and resistance level.

What is Resistance Level?
We calculate resistance level to know, how much a stock price might increase on its next trading session. Resistance level is being calculated in three parts. But before you start calculating you need to calculate pivot point.

What is pivot point?
In simple meaning pivot point is an average of a stock price during the day.

How to calculate pivot point?
There are two ways or formulas to calculate pivot point.
`Formula 1: Pivot Point=(High+Low+Close)/3`
`Formula 2: Pivot Point=(Open+High+Low+Close)/4`
Chart Infinities uses formula 1 to calculate pivot points for our users.

What are the formulas of resistance level calculation?
Whenever we calculate resistance level we calculate in three levels. Usually a stock's movement stays between the Level 1 and 2. However sometimes depending on buyer or seller’s trend a stock might go beyond Level 1 and 2 till 3. In very rare scenarios stock price goes beyond level 3.
`Resistance Level 1: (Pivot Point * 2) - Low.`
`Resistance Level 2: Pivot Point + ( High - Low)`
`Resistance Level 3: High + 2 * (Pivot Point - Low)`

What is Support Level?
We calculate support level to know, if a stock price starts to decrease, in that case what extend the price might decrease. Support levels are also being calculated in three levels. Usually stock price stays between Level 1 and 2 as resistance level.

What is the formula of support level calculation?
`Support Level 1: (Pivot Point * 2) - High`
`Support Level 2: Pivot Point - (High - Low)`
`Support Level 3: Low - 2 * (High - Pivot Point)`

How to calculate support and resistance level with Excel or Calc?
You can use these formulas to calculate support and resistance level in excel. Or you can download the support and resistance level calculator, which I created for you form the link given below.
Before you start trading do not forget to go through with another three tutorials which state How to read financial report or Balance-sheet, When Why and How stock price changes, and Few things need to care about while trading.