In the above chart, I have a drawn a closing price resistance line in blue indicating a highest candle close on the chart, now the price action needs to close above that previous resistance to indicate further upside movement in the stock therefore we need to wait for the daily price closing in order to determine and confirm the further movement.
In this chart, the price action did go above the marked resistance level (in blue horizontal line) but failed to close above it which indicated selling pressure at higher levels and eventually if it failed to close above the resistance zone then it came down sharply.
Therefore, a trader must wait for the closing of a candlestick in order to determine and confirm the big players further movement in the market.
Lesson: Trade with the confirmation of closing price or candlesticks.
Regards
Comment
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Reliance Capital is still facing selling pressure and dipping down.
vortex indicator is very good indicator which shows trend, so if you master this indicator to read, it helps to identify trend beforehand. please try it. rel capicat jwill correct , correction has set in
NeeteshJain
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@nalinakshi, That looks good and convincing, thanks for sharing. Regards
Parasuram
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on key resistance/support breach not one close even a couple of closes is must to confirm expected movement....