#banknifty - 24th November!!

4 days ago

BANKNIFTY

Observe the chart, understand the chart, then implement according to the chart.

Chart contains support and resistance levels ( understand how it works 👇🏻)

Support and resistance are key concepts in technical analysis used to identify potential price levels where assets may reverse or stall.

Support:

-Definition: A support level is a price point where buying interest is strong enough to overcome selling pressure, preventing the price from falling further.

- Indicators: Support levels can be identified through historical price data, trend lines, or moving averages.

- Behavior: When a price approaches support, it may bounce back up. If broken, it can become a new resistance level.

Resistance:

- Definition: A resistance level is a price point where selling interest is strong enough to overcome buying pressure, preventing the price from rising further.

- Indicators: Similar to support, resistance levels can be identified through past price action, trend lines, or moving averages.

- Behavior: When the price approaches resistance, it may retreat. If broken, it can turn into a new support level.

Importance:

- Trade Decisions: Traders use these levels to make buy or sell decisions, set stop-loss orders, and identify potential profit targets.

- Market Psychology: Support and resistance levels reflect market sentiment and the balance between supply and demand.

Understanding these concepts can enhance trading strategies and improve decision-making.