HDFC Bank - A pictorial view - Live Market
Dear Followers:
Lets understand the concept of market which is applicable every where.
1. The so called, smart money or the big players require liquidity; means when retailers or small investors have the majority of stock with them i.e. (stock is overbought) prices will be brought down and when opposite happens, i.e. (stock is oversold) prices are taken up.
2. How would we (the retailer know that it is oversold/overbought)? Through RSI or Williams R%. How, they have to be set properly, we will discuss in some other chart.
3. I think (out of my experience) apart from these two others are only lagging indicators and have not to be used at all.
4. We check only price on the graph and that too the horizontal view and not the circular aspect of the relationship between time and price. (I would take up this with also with some other chart.
5. Price action we all use but probably no one knows the meaning of price action. It is not only checking only high and lows but to match horizontal and circular, vertical supports and resistances.
I am presenting here the basic glimpse of how the circular and horizontal resistances and supports work with the help of 1 H Chart of HDFC Bank. All the high and lows have also been marked with red and blue diamonds respectively.
We will discuss all these aspects in detail in charts to be discussed in future; one by one. Till then keep track of the timings, date and prices mentioned by me in all the charts and adhere to that.
Thank you
