Support Resistance Level

Technical Analysis Charting on Kite
1

hello Siva,

Could you please help provide formula for the Support Resistance Levels [FIBONACCI] provided in Kite Chart, thanks much in anticipation.

2

http://technicianapp.com/resources/fibonacci-retracements/

3

Hi Bhuvanesh,

the next day’s SUP & RES levels [Fibo] are calculated post taking in to account the previous day’s high, low and close price, as follows:

Resistance 2= Pivot + (PD high – PD low) * .5 or .618
Resistance 1= Pivot + (PD high – PD low) * .236 or .382

Pivot = [High+Low+Close] / 3

Support 1 = Pivot – (PD high – PD low) * . 236 or .382
Support 2 = Pivot – (PD high – PD low) * . 5 or .618

but these are NOT the values I see in the Kite Chart, hence I ask this question, hence want to understand if Zerodha using a different formula and details of the same, ideally with an example will help, for example you could take today’s BankNifty [Spot] levels, and how the same was derived, formula? thanks!!

Best Regards

4

I have just decoded whats in fibonacci pivot of kite yesterday , here you go , $bars[“yhigh”] is yesterday high , $bars[“ylow”] is yesterday low.$pp is pivot point.

$pp = ($bars[“yhigh”] + $bars[“ylow”] + $bars[“yclose”])/3;

$fr1 = $pp + 0.382 * ($bars[“yhigh”] - $bars[“ylow”]);
$fr2 = $pp + 0.618 * ($bars[“yhigh”] - $bars[“ylow”]);
$fr3 = $pp + 1.000 * ($bars[“yhigh”] - $bars[“ylow”]);

$fs1 = $pp - 0.382 * ($bars[“yhigh”] - $bars[“ylow”]);
$fs2 = $pp - 0.618 * ($bars[“yhigh”] - $bars[“ylow”]);
$fs3 = $pp - 1.000 * ($bars[“yhigh”] - $bars[“ylow”]);

5

Thanks!

the formulas you have given is exactly the same as what I have mentioned in my post.

but looks like the point I made is missing attention,

I repeat these formulas what we are discussing is what is known to everyone and it is in the public domain, but but THESE IS WHAT IS NOT FOLLOWED IN KITE CHARTS, it is different and that is exactly what I am trying to understand, what is the formulas used in Kite Charts,

Nithin/ Hanan/ Siva or anyone from Zerodha could you please respond to this,

highly appreciate, thanks!!

6

Will update you.

7

I dont know where you checking , I googled and saw 2 random websites , it mentioned exact formulate kite is using

https://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:pivot_points

Also dont care about other pivot points formula , For my algorithm ,levels in kite charts are giving good results , may be more than lakhs of traders in zerodha and they are following them ?

Just follow what majority are following , don’t reinvent the wheel.

8

Chill man, you seem to be getting too excited and aggressive, which is uncalled for,

there is a purpose and a reason why a question has been asked and the concerned person has already replied that the question will be responded to, could not understand your unsolicited reply, just relax.

the S&R levels in Kite chart is designed by Zerodha and they will respond to the same.

Thanks for your understanding!

9

Thanks Siva,

to substantiate my point let us take an example of today’s Bank Nifty [Spot].

when we follow the standard formulas as mentioned in my above message, the typical levels one derives are as follows:

Previous day data: 30163 (H) / 29919 (L) / 30104 ©; Diff of previous day high and low is 244.

Now to identify Pivot = (H+L+C) /3, we get 30062

and
R3 = 30062 + (2441) = 30306
R2 = 30062 + (244.618) = 30213
R1 = 30062 + (244*.382) = 30155

Pivot = 30062

S1 = 30062 - (244*.382) = 29969
S2 = 30062 - (244*.618) = 29911
S3 = 30062 - (244*.382) = 29818

these above S&R levels as per standard Fibonaci.

now if i look at today’s Kite chart the S&R levels (Fibo) look as follows:

R3 = 30298.44
R2 = 30208.21
R1 = 30152.47

P = 30062.24

S1 = 29972.01
S2 = 29916.27
S3 = 29826.04

ok, fine today may be the differences are minor,

but on other day’s i have noticed the differences are huge, could you please clarify if Zerodha uses different formula, if yes, could you please share the same,

Thanks and best regards

10

On which timeframe you are checking ?

12

my understanding being, S&R levels has nothing to do with time frame.

these levels are basically for the day.

i am looking at 15MT charts

13

Can check this, it is already answered and pivots are calculated differently for different timeframe.

14

woow woow you relax buddy , I just replied to the thanks post you replied for my formula , so I am not replying uninvited , its unlisted post anyway , its just between us and I am trying to help you . And by the way , The formula I gave is what followed exactly in kite (chartIQ) . You might be calculating with wrong ohlc values. tell me how u got your ohlc values.

15

Nope , 15 min and 1 hour pivot points are different.

16

Its not its designed by chartIQ , they just implement it

17

OHLC levels are universal and not different; hence all of us follow only ONE OHLC (previous day) which is as mentioned in the NSE website.

18

Thanks Siva, this link was useful, but anyway i am very clear i am only talking about previous day OHLC which is exactly what Bharathw has mentioned in his message,

anyways the answer to my question could be due to the inconsistency in the prices mentioned in the Kite chart, the prices are not accurate as that of NSE, hence that could be the only plausible explanation for the fibo levels being different,

19

Nope , its not , I parse 1 minute candle and find high and low and close from it and its different from usual OHLC and that is what is used by kite . And the pivot points standard and fibonacci derived from that ohlc is exactly same in kite.I am using it for my bot for past 1 week.

Close value you see in NSE maybe past 30 mins average close or whatever !! am not sure.