shiv2798
Short

Identifying the Area of support & Resistance

NSE:KSCL   KAVERI SEED COMPAN
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Many have different theory of support and resistance , but in Price action trading you can understand very clear indication of price braking the resistance ,
Normally resistance have to be broken by big candle , the amount of force require to overcome sellers in particular area requires lots of buying absorption, in other words when institutional want to push the price high then they have to buy all the stocks which are forming the resistance and have to overcome all the seller and push the price high ,
Once the price is pushed to high absorbing all the buys from small or week sellers now that area becomes support until institutional sell off their stocks , and in other words the trend of institutional is about to start once they brake resistance and retest the resistance as support
in this chart you can view the Big candle braking the Previous resistance and taking the price to one step level or 2 standerd deviation ( which is used by indicators in B B, don chin channel, RSI , Stochastic , May oscillators ) once the price reached to 1 step level they cool off the buying and letting the people off the stock and price will come down to area where the resistance have been breached and it is now called as support .
i hope my small brief would help to identify the Support and resistance
Regards
The price is heading towards the support Zone one can look for short selling for day with stop above the previous day high
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