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Resistence

How to Draw Support and Resistance Like a Pro! Support and Resistance are one of the most important aspects of technical analysis but often I see traders doing it wrongly. How to Draw Support and Resistance: Imagine you have a chart filled with SR like the one below. Do you know which levels to pay attention to? When you’re about to start, how to plot support and resistance lines? It’s filled with nothing but lines and it doesn’t seem to make much meaning of the chart at all. nah My approach to drawing Support and Resistance uses either 1 line or 2 lines. It is much cleaner and immediately tells you which area of the chart to pay attention to. I use a single line when price respect a level almost to the pip and i use 2 lines when price bounces off an area. I highlight only the key Support and Resistance of a chart meaning the obvious swing highs and lows. The intermediate SR i will not draw any lines so as to maintain my focus on the key areas. Besides, with enough screen time you can easily identify those intermediate Support and Resistance without any lines. real world… You must keep in mind of the R.S.M. formula. These three things stands for: Reaction Setup Management Now take notes because this is important… Reaction Here’s the truth: Drawing support and resistance lines aren’t the holy grail.
NSE:BANKNIFTYEducation
by EmpireCrown
Basing and Breakout formation Basing : Its accumulation phase where smart money comes in, it acts as a base. Here price may follow the previous trend or shows reversal Always take partial position, don't get trap by infusing entire position. Volume activity remains low and you may see some heavy buying at support. Psychology : participants are not ready to participate actively, it lacks enthusiasm. Breakout phase : Here, It may break the support or resistance The bigger the base, the stronger the rally can be. If it breaks resistance add up your position and if it breaks support cut out your position. Psychology : Here you will see the moment in price activity with higher spikes in volume. Here they get the direction.
NSE:ZYDUSLIFEEducation
by OK_Rane
Banknifty Target and Prediction-Intraday 8 thJune Check out daily Nifty and Banknifty Target for Intraday & Prediction for Tomorrow.These Forecast are based on some of the most used Technical Indicators; hence, they are expected to give accurate predictions. This Index Target, Forecast or Predictions should be used only for reference & educational purposes. The Data or Information provided may or may not be accurate or reliable for Investment & hence, should be used at one’s own risk
NSE:BANKNIFTYEducation
by OptionTrendAnalysis
A layman’s guide to Support and ResistanceForeward 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 they are used to make specific trading decisions. The fact that these levels flip roles between support and resistance can be used to determine the range of a market, trade reversals, bounces, or breakouts. They help in the identification of a trend reversal. For example, you might identify an upcoming support level and decide to start buying the stock as it approaches the said support knowing that it will likely rebound higher. The support and resistance levels test and confirm the trends and should be closely tracked by every trader. These levels exist due to an influx of buyers and sellers at key junctures. So, the question arises- what do support and resistance really mean? What is a Support? A support level/zone is a level where the price tends to find support as it falls. This means that the price is more likely to “rebound” from this level rather than pierce through it. However, once the price breaks down this level, it is likely to continue falling until meeting another support level. What is a Resistance? A resistance level/zone is a level where the price tends to find resistance as it rises. This means that the price is more likely to “bounce back down” from this level rather than break through it. However, once the price pushes above this level it is likely to continue rising until it meets another resistance level. Trade setup: 1. Buying the support The price gets rejected from the resistance level a few times. Finally, after a good attempt, the price manages to break out from the resistance. Don’t buy yet, wait for the retest since it can be a false breakout and you may end up losing your money. After a successful retest, open up your long positions. Make sure to lock in profits on the way up. 2. Selling the resistance The price gets rebounded from the support level a few times. After a few attempts, the price finally breaks down of the support level. Don’t sell yet since it can be a false breakdown, wait for the retest. If the retest is successful, close your long positions on the breakdown point. Some may want to open short positions too. Role Reversal/ Change of Polarity A resistance level after a successful breakout turns into a support level and a support level turns into a resistance level after a breakdown. The turning of Resistance into a Support is or vice versa is known as "Change of Polarity". Conclusion: A zone keeps on flipping roles between support and resistance. Sometimes, it acts as a support, and other times it acts as a resistance. Hence, never consider a zone as fixed support or resistance. Moreover, consider these zones a potential support or resistance zones because there isn't any certainty that these will act as the desired zone. Useful Tips: 1. Avoid placing orders at these major points since there exists a lot of volatility around these points. 2. Take care to not place buy/sell orders directly at these levels since there is a good chance of not hitting the exact levels. Use approximate margins for placing orders. 3. Never ever forget to use a stop loss if for an instance the trade doesn’t go as expected.
NSE:NIFTYEducation
by johntradingwick
54
SRTRANSFIN Near Resistance Level of 800SRTRANSFIN is near 800 level, which is a strong resistance after march crash, however it has been tested multiple times, but this time it has also crossed 200DMA and trading near 800 level. it looks it could retest 750 levels before giving breakout. once it breaks 800 level. 800-960 levels openup for upside. RSI is at 68 on daily scale and RSI is at 56 on weekly scale which is highest after march lows indicating a momentum ahead down the line.
SEducation
by VijayBabuA