How to Identify Powerful Support / Resistance ??

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Whenever you see a higher time frame chart you should ask 2 questions --

1) What trend is the market in ??
2)where are major levels of structure that you should be paying attention to - in that direction ?

SO in the chart i have shown above the answers are following

1) Trend is bearish
2) Major levels of support and resistance are drawn in Horizontal blue lines

How did i draw blue Horizontal blue lines ??
Those blue horizontal lines are levels of support / reistance which has been tested atleast 3 times

So i shall now proceed to tell you the story of Escorts as per the numbering i have done on the chart

1) Escorts made a high on 22 nd march making a high of 834 -(which is never broken till now)
2) Escorts made a low of 782 on 25 th march
3)Escots made a lower high on 27th March making a high of 826 (thus making a new trend setter)
4) Escorts made a lower low on 8th April - 752 (Thus making it a trend continuation & the Down Trend is confirmed)
5) Escorts made a lower high on 16 th April - 801
6) Escorts made a lower low on 16th May 2019 falling dramatically to a previous support level - 542
7) Escorts made a lower high on 21st May 2019 - 614

So Now what is Next in Escorts ???

Again ask the same questions which i said in the beginning & you will get the following answers

1) Trend is Down
2) Horizontal blue lines are areas of Support and resistance

So unless you do not get a daily close above 614 (which is an area of resistance) - do not attempt to go long.

If you are short - keep stop loss at 614

Your target should be level of previous support - which is 514 (100 points)

Presently Escorts is trading @ 594 - sl for shorts is @ 614 (On daily closing basis)

Comment: The important thing here is

As written above

Whether we get a Daily close above 614 today ??

Please read carefully !
Trade active: Shorting is active as long as it does not give a daily close of 614

The important price action is 614

only in case there is a daily close above 614 - you need to close the short position

if you like the post - do like the post - to motivate me for further posts like these
Trade active
Comment: todays close below 614 ; so trade is active - i shall update on regular basis
Comment: if todays close is above 614 - please exit the trade

do not reverse the trade

if SL is hit - please exit
Since i shorted @ 609

what is the SL ??

Is it 614 on closing basis ??

Today it closed @ 602

Anyway good insight !!

Although today it went up to 621 , it gave a closing below 614

yes shalu ,

you got it correct

SL is 614 on closing basis !!!
i am into this trade

i shorted @ 609

All the best Shalu
Today s close is below 614

Hence trade is active
VijayGeorge VijayGeorge

I personally have taken this trade


please do your own analysis

Yes Vijay trade is Active !!!!
@VijayGeorge, yes trade is active
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