| json_metadata | "{"app":"musing/1.1","appTags":["Bitcoin","trading"],"appCategory":"Bitcoin","appTitle":"Everyday traders say this(xxxx) is the support of Bitcoin, my question is how do they arrive at such a figure daily to call it a support? Is there any mathematical calculation available to find out the daily support level for Bitcoin?","appBody":"<p>Yes there do exist a mathematical calculation. For all traders/investors \"Support level\" is a very peculiar and key term. If you know a support level, then you can trade an asset with a better precision. </p>\n<p>In a trading chart, there are different time frames available such as M5, M15, M30, H1, H4, D1, W1, MN, etc. M stands for minutes, H stands for hours, D stands for Daily, W stands for Weekly, MN stands for monthly. So M30 means 30 mins timeframe of a chart, D1 means a daily chart, W1 means weekly chart, MN means monthly chart. </p>\n<p><br></p>\n<p><img src=\"https://cdn.steemitimages.com/DQmNqjTxaVHawrG1rY4H9C5Jzn7Em6c2aehyDFDbx7yFAhn/m000.png\" /></p>\n<p><br></p>\n<p><br></p>\n<p>So for every time frame, there is an opening price, high price, low price and a closing price. The lower time frames are generally traded by experts and scalpers. The higher frames charts are utilized most by the institutional investors. The low time frames are generally noisy and if you don't have experience then you should avoid it and higher time frames are good as they are less noisy and easy to understand and have more precision and clarity. That is why all the expert advises trading D1 and higher timeframe charts to trade.</p>\n<p>For trading effectively and to time the market properly, it is necessary to know the technical analysis of the chart & price action. The basic things of a chart are support, resistance, pivot point, etc and every investors & trader should know it.</p>\n<p>So once we choose a time frame and know the value of High, Low and closing price, then we can calculate the support, resistance, pivot, etc. So let's calculate that.</p>\n<h5><strong>Pivot point (PP) = (High + Low + Close) / 3</strong></h5>\n<h5><strong>First level support and resistance</strong></h5>\n<p>First resistance (R1) = (2 x PP) – Low</p>\n<p>First support (S1) = (2 x PP) – High</p>\n<h5><strong>Second level of support and resistance</strong></h5>\n<p>Second resistance (R2) = PP + (High – Low)</p>\n<p>Second support (S2) = PP – (High – Low)</p>\n<h5><strong>Third level of support and resistance</strong></h5>\n<p>Third resistance (R3) = High + 2(PP – Low)</p>\n<p>Third support (S3) = Low – 2(High – PP)</p>\n<p><strong>Important Notes</strong></p>\n<ul>\n <li>Pivot Points are those where bullish sentiment changes to bearish if broken & vice versa. In other words, it indicates overall market sentiment and enables a trader to adapt to the changing market scenario. For example, if in bullish price action, the PP level remains intact then it indicates a bullish sentiment and if PP level breached, then the sentiment changes from bullish to bearish.</li>\n <li>Pivot Points are generally calculated for the previous period. So today's pivot point will use yesterday's open, high, low & closing values.</li>\n</ul>","appDepth":2,"appParentPermlink":"p36x2d4zf","appParentAuthor":"sapwood","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}" |
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