It is a calculation method that yields 4 resistance and support levels. It is used in pivot point level calculations. It makes use of the High, Low and Close price of the previous day.
R4 = Close + (High – Low) * 1.1 / 2
R3 = Close + (High – Low) * 1.1 / 4
R2 = Close + (High – Low) * 1.1 / 6
R1 = Close + (High – Low) * 1.1 / 12
PP = (High + Low + Close) /3
S1 = Close – (High – Low) * 1.1 / 12
S2= Close – (High – Low) * 1.1 / 6
S3 = Close – (High – Low) * 1.1 / 4
S4 = Close – (High – Low) * 1.1 / 2
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