In this article I will discuss how to calculate support and resistance level very easily with excel or Openoffice / LibreOffice Calc. This is another important thing that you really need to calculate the resistance and support level of a stock before you invest or trade. For our website we have an automated page that calculates all support and resistance level automatically just by entering stock name or code. If you do not have any software or such script then I will tell you in this article how to do it without any software or script. However before going further with this article I would like to inform you that this an advanced level article, if you haven't go through with the basics yet please feel free to go through with The Basic Terms of Stock Market, Basic Terms of Investment and Trading, Basic FAQs for the beginners in stock markets, Few preliminary basic terms of Trading, Basic homework for beginners for stock market, How to read Candlestick Chart without any complication. However before reading any article or deciding about trading or investing please do not forget to check whether your conditions are suitable for stock markets or not from Few questions you need to ask yourself before your first step in stock market.

**Why do I need to calculate Support and Resistance level?**

Support and resistance level give you an estimated picture of a stock's next move. It is a part of technical analysis. Defiantly support and resistance level can not tell you what can happen exactly in next trading session. But it gives you an idea of a stock how much it might rise or how much it might fall. Support resistance level is considered as maximum points, that mean if support or resistance level being calculated 100 the stock might go till 100 maximum by the calculation. Usually stock price changes lesser than support and resistance level, however sometimes it might go beyond the support and resistance level which have been calculated.

**What values I require to calculate support and resistance level?**

You need a few values of a stock in order to calculate support and resistance level such as Open, High, Low, Close.

**What is Resistance Level?**

Resistance level being calculate to know how much a stock might rise on its next trading session. Resistance level is being calculated in three parts of Resistance Levels. But before you start calculating you need to calculate pivot point.

**What is pivot point?**

In simple meaning pivot point is an average of a stock price during the day.

**How to calculate pivot point?**

There are two ways or formulas to calculate pivot point.

Formula 1: Pivot Point=(High+Low+Close)/3

Formula 2: Pivot Point=(Open+High+Low+Close)/4

**What are the formulas of resistance level calculation?**

Whenever we calculate resistance level we calculate three levels. Usually stock movement stays between the calculation of Level 1 and 2. However sometimes if buyer or sellers become heavy on a stock, then might go beyond Level 1 and 2 till 3 or more, in rare scenario.

Resistance Level 1: (Pivot Point * 2) - Low.

Resistance Level 2: Pivot Point + ( High - Low)

Resistance Level 3: High + 2 * (Pivot Point - Low)

**What is Support Level?**

Support Level being calculated to know if a stock start to fall, then to till which extend level it might fall. Support levels are also being calculated in three levels. Usually stock price stays between Level 1 same as Resistance level.

**What is the formula of support level calculation?**

Support Level 1: (Pivot Point * 2) - High

Support Level 2: Pivot Point - (High - Low)

Support Level 3: Low - 2 * (High - Pivot Point)

**How to calculate support and resistance level with Excel or Calc?**

You can use these formulas to calculate support and resistance level in excel. Or you can download the support and resistance level calculator created by me for you form the link given below.

Before you start trading do not forget to go through with another three tutorials which state How to read financial report or Balance-sheet, When Why and How stock price changes, and Few things need to care about while trading.

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