Simply speaking a support is a zone where demand overcomes supply. There are more buy orders than the sell orders at this level, which could force the bids to go higher and hence the stock can rally. I would like to discuss one of the efficient ways to trade support levels. This is not the only way and may not be the perfect one but still with good success...
Resistance and support are faces of a same coin the concept is same , if price reverses its direction after getting closer to a particular level or zone we call it resistance or support level or zone. When you start learning about it more you will find that it is the most basic approach to analyze a price action, then you mix it up with trend line which is again...
support and resistance they play a truly crucial role in trading If you want to trade like a pro, there's something you should know: Support and resistance, they're the stars of the show! this can be understood from the below:- Support is like a floor, it holds prices up high, Resistance is a ceiling, prices can't seem to fly. When prices hit support, they tend...
Stop-loss is a risk management tool used by traders to limit their potential losses. It is an order placed with a broker to automatically sell or buy a security if it reaches a certain price level, known as the stop-loss level. Here are some general guidelines on where to place stop-loss orders 👇 ⚡ Support and Resistance Levels A common approach is to place...
We all know that market moves in Phases. The four most popular phases are – 1️⃣Accumulation 2️⃣Markup 3️⃣Distribution and 4️⃣Markdown Mr. Wyckoff analyzed these phases further, esp. Accumulation and Distribution, to understand the price behavior for potential opportunities to trade/invest in the market. In this tutorial I am going to have a brief discussion...
Hi 👋 In this post I would try to throw some light on the Price & Wave Volume relationship (popularized by late David Weis). This method may help trades in two ways: 1️⃣Ride the trend 2️⃣Picking the end of a rally I came across this chart randomly and found that there are a few principles that I can discuss with the help of this chart. Before reading any...
I will never trust anything that can be presented with some objective metrics. Unfortunately, support and resistance are highly subjective concepts so I had to do a lot of digging to find some statistical proof for this working. You can randomly draw lines and see price action acting like it's breaking out or breaking down. You can't rely on purely support...
It looks like Megaphone, Usually the price is hitting higher highs on the top resistance line and higher lows on the bottom support line. Easily spot at the top of the trend. How to trade it? For downward breakouts, use the lowest valley in the pattern as the target. For upward breakouts, consider the difference between highest and lowest valley as height for...
1. What is the Ascending channel pattern? - Price trade within the range in an up trend, it forms a higher high and higher low. - The channel provides support and resistance - Until prices continue to advance trade within the channel - Volume Activity turns stagnant 2. How to trade it? - If it breaks above the resistance line, extrapolate the channel...
Nifty is in consolidation phase. This may or may not lead to a bear market and let’s not discuss it as of now. I will try to analyze Nifty, on the basis of support and resistance levels and time cycles, for the next possible swing and its direction. Support and Resistance levels ------------------------------------- It can be seen on the chart that Nifty made a...
Buying Climax: is a situation on the chart that represents ‘exhaustion’. This is the sharpest upward price surge where the last set of buyers enter the stock, thinking that the stock is going to the moon and never look back. This also reflects ‘Greed’ entering in to the stock. Investors who bought at the lower prices, during accumulation, take it as an...
A Tutorial on Support and Resistance - Part 1. What are Support and Resistance ? Support - Is the price level from where people expect maximum buying/demand to come. 1. Price is falling and it is expected to reverse and move up from Support. 2. Support level is always below current price level. 3. Is used to create buying positions or book profits in shorts. ...
A confluence of support or resistance is simply an intersection of two or more important levels. Market participants prefer to trade around a zone that involves two or more factors rather than a zone with just one. The probability of winning is higher around confluence zones.
Foreward In this thread, I would try with the best of my knowledge to explain the following questions as easily and briefly as possible. 1. What is a support level? 2. What is a resistance level? 3. What is their importance? 4. When and where to place Buy/Sell orders? Introduction Support and resistance levels are a critical part of trend analysis because...
Currently sitting at a support zone of 22280-22300. Break below this can take us to 22090. Above 22300 we have 22505, 22650. Have a look on the chart for the support and resistance levels. Share your opinion in the comment section below, and like and follow for daily market analysis ! Professional Trader | Experience: 2.5 Years NOTE: The above mentioned views...