Hello Everyone, It's been a long time since my last post but i promise now i will post regularly.
Let's Discuss the Chart.. All the areas marked with red Circles are the point from where market has fallen and all the areas marked with green circle is where market has bounced back.. Every time market fell big Indicator was Overbought and every time we bounced indicator was Oversold.
Interesting part is every time market has bounced/fallen the below indicator(RSI with normal setting) had already indicated all the bounces/falls. Combining chart with RSI can be deadly combo.
Why this area is so much important:-
It's the same area from where market earlier has taken resistance and now taking support. many will say it has already tested this level again and again but remember market can't fall from any important level if it is coming from very high levels. It has to consolidate and then break. Till then we can expect a little bounce or consolidation.
Happy Trading. Thanks & Regards Saurabh from Learner's Paradise.