Hi….

Here is a method to calculate levels for next trading session using todays close and daily
volatility.
Ketangosar had explained once in SB but i have made changes and using spot values.

The data needed for calculations are – the Spot closing value AND Daily volatility value.
You can find daily volatility on http://www.nseindia.com/
- Go to F&O / Market today / Daily volatility.
- For historical value check archives.

Now for example we will take Nifty Spot closing value for 3rd jan 2011 – 6157.60
And the volatility on 3rd jan 2011 - 0.91795

Calculations
(a) 6157.60 x 0.91795 % = 56.52
(b) 56.52 x 10% = 5.652
(c) 56.52 – 5.652 = 50.87

Assuming the volatility remains same for next session the high should be 6157.60 +
50.87 = 6208.47 and the low should be 6157.60 – 50.87 = 6106.73.

Now we have the full range and can calculate the intermediate and further levels using
Fibo retracement.

Fibo retracement using 6157.60 (close) and 6208.47 ( calculated high)

0% 6157.6
61.8% 6189.03
100% 6208.47
161.8% 6239.90

Fibo retracement using 6157.60 (close) and 6106.73 (calculated low)

0% 6157.6
61.8% 6126.16
100% 6106.72
161.8% 6075.29

This method can also be used to calculate levels for stocks.

If someone can refine more or add their findings related to this method pls do so.

Regards,
Vidyanand.