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GAV Formula for calculating the support and resistance:
Support = |
Opening price - Support price range (i.e. associated with the actual trend line)* degree factor |
Resistance= |
Opening price + Support price range (i.e. associated with the actual trend line)* degree factor
|
Example 3: In
Example2 we have calculated 1X2 trend line support and resistance price range in example 1 I have mentioned the opening price of nifty was 8775.
Now we will calculate the 1X2 trend line resistance and support.
1X2 trend line support = 8775-79.7972*0.35416=8746.7390
1X2 trend line resistance = 8775+88.9799* 0.14583= 8787.9759
Below table has the resistance and support calculation of all GAV trend lines.
|
|
|
|
Price |
|
|
|
|
|
Enter Price range |
|
|
86.25 |
8775.00 |
86.25 |
|
|
|
|
|
Degree |
Degree Factor |
Resistance |
|
|
Degree Factor |
|
|
support |
16X1 |
86.25 |
0.48 |
95.38 |
8820.70 |
1X16 |
86.25 |
0.48 |
77.58 |
8737.83 |
8X1 |
82.5 |
0.46 |
94.97 |
8818.53 |
1X8 |
82.5 |
0.46 |
77.95 |
8739.27 |
4X1 |
75 |
0.42 |
94.16 |
8814.23 |
1X4 |
75 |
0.42 |
78.68 |
8742.21 |
3X1 |
71.25 |
0.40 |
93.76 |
8812.11 |
1X3 |
71.25 |
0.40 |
79.05 |
8743.71 |
2X1 |
63.75 |
0.35 |
92.95 |
8807.92 |
1X2 |
63.75 |
0.35 |
79.80 |
8746.74 |
1X1 |
45 |
0.25 |
90.96 |
8797.94 |
1X1 |
45 |
0.25 |
81.67 |
8754.58 |
1X2 |
26.25 |
0.15 |
88.98 |
8787.98 |
2X1 |
26.25 |
0.15 |
83.56 |
8762.81 |
1X3 |
18.75 |
0.10 |
88.20 |
8784.19 |
3X1 |
18.75 |
0.10 |
84.33 |
8766.22 |
1X4 |
15 |
0.08 |
87.80 |
8782.32 |
4X1 |
15 |
0.08 |
84.71 |
8767.94 |
1X8 |
7.5 |
0.04 |
87.03 |
8778.63 |
8X1 |
7.5 |
0.04 |
85.48 |
8771.44 |
1X16 |
3.75 |
0.02 |
86.64 |
8776.80 |
16X1 |
3.75 |
0.02 |
85.86 |
8773.21 |
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