How to Find True Support and Resistance Areas! A Most Profitable STEEM Ed Excel Tutorial :)

in #steem • 8 years ago

In almost every social media #blog, we find no shortage of "fake news" technical analysts spouting nonsense about resistance lines here, and support lines there. But how do we actually establish these observations empirically?

I can tell you that the moon is made out of green cheese, but unless I demonstrate it with facts and empirical evidence, you wouldn't believe it...at least, I hope you wouldn't believe it...right? Right!?!? :)

Fortunately, Microsoft Excel is a wonderful tool for us to use to establish factually, mathematically, where support and resistance lies.

Using my prior #Steem Ed lesson, let's pull up some data from Coinmarketcap.com. For this example, I'm going to use #bitcoin year-to-date:

Please note the arrangement of my data

  • Let's presume that for our data series, resistance is defined as the average session highs.

  • Find an empty cell, and enter the following formula: =average(D2:D60)

Note that your range will vary depending on your data. If you just want to find the average of the ENTIRE column -- which we do! -- then a shortcut works as follows: =average(D:D)

  • To find support, which we would define as average session lows, find another empty cell, and enter: =average(E:E) or =average(E2:E60)

  • Finally, you can compare these two support/resistance areas with the average of your "closing" price, which would be defined as: =average(F:F)

  • In my bitcoin data file, I can see that the average closing price of bitcoin is 4.5% below our defined resistance (ie. =numerator cell/denominator cell - 1), and the closing price is 5.7% higher than our defined support (also =numerator cell/denominator cell - 1)

So there you have it! Some empirical ways to define support and resistance without having to rely on spammers' BS.

Thanks for reading! For more of my work and credentials, please check out the following:
#education #investing #bitcoin #excel
8 years ago in #steem by
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     8 years ago  

    Thank you for sharing knowledge,, good job

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       8 years ago  
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         8 years ago  

        Thanks so much! I'm indebted to your generous support! :)

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