#Watchlist
#SBILIFE (W):- CMP 1294 Looks Good above 1300 For More Upsides :)
Trading volume tends to drop off the longer congestion lasts. This is not always the case but is the general tendency. Volume tends to pick up when the congestion ends. The congestion is over when there is a breakout, typically on larger-than-recent volume, and the price moves outside the congestion range.
During a congestion period, the price will move between support and resistance. When the price breaks above resistance or below support, it indicates that the buyers or sellers have overpowered the other side, respectively.
Some investors will enter during congestion, assuming that the stock price will continue to rise after the congestion ends. This is more likely to be the case if the price was in an uptrend leading into the congestion period.
Other traders may wait for the price to break out of the congestion before entering a trade. For example, they may buy if the price moves out of the congestion price range on high volume.
#Disclaimer:- View shared is for educational purposes only. Conduct your due diligence before making any trading/investment decisions.
#SBILIFE (W):- CMP 1294 Looks Good above 1300 For More Upsides :)
Trading volume tends to drop off the longer congestion lasts. This is not always the case but is the general tendency. Volume tends to pick up when the congestion ends. The congestion is over when there is a breakout, typically on larger-than-recent volume, and the price moves outside the congestion range.
During a congestion period, the price will move between support and resistance. When the price breaks above resistance or below support, it indicates that the buyers or sellers have overpowered the other side, respectively.
Some investors will enter during congestion, assuming that the stock price will continue to rise after the congestion ends. This is more likely to be the case if the price was in an uptrend leading into the congestion period.
Other traders may wait for the price to break out of the congestion before entering a trade. For example, they may buy if the price moves out of the congestion price range on high volume.
#Disclaimer:- View shared is for educational purposes only. Conduct your due diligence before making any trading/investment decisions.