Levels & Eventsdraws on the price

Support and resistance computed from the previous period's high, low and close. They matter largely because many desks run the same arithmetic.

On this chart: Classic formula from the prior completed period — weekly on daily charts, monthly on weekly, daily on hourly.

Floor-trader pivots run one fixed formula on the prior completed period's high, low and close, producing a central pivot with three resistance and three support rungs. The chart scales the period one degree up from the bars — a daily chart uses last week's range, a weekly chart last month's — so the rungs sit far enough apart to matter at that timeframe.

The levels are partly self-fulfilling: enough desks compute this exact arithmetic from the same public numbers that the levels get watched, and watched levels behave like levels. That is also why the formula is the conventional one, never 'improved.'

P is the period's equilibrium; price above it reads the period as favoring buyers. R1/S1 are the ordinary excursions, R2/S2 the stretched ones, R3/S3 the rare extremes. The lines start at the current period's first bar — they are levels for this week, not the history behind it.

Weekly pivots line up naturally with weekly options: S1 and S2 are pre-computed 'ordinary excursion' and 'stretched excursion' distances for the week, from arithmetic half the market shares. A strike under S2 sits beyond the week's conventionally-stretched range — a description of position, from levels that exist independent of any opinion.

Like everything in this guide, these are descriptions of conditions and reference levels — context for your own decisions, not instructions to trade.