How to Draw
Support , Resistance and Trendlines ?
A Foundation of Stock Market !
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What is Support and Resistance ?
⏫Support is an area for price , where it halts due to demand of the stock at that price .
⏬Resistance is an area for price ,where it halts due to Supply of the stock at that price . 1/n
How to Draw S/R ?
You can use Any time frame for Drawing S/R and it works on all time frames .
Whenever the Price Reverses from an area for more than 2 times that area can be called as S/R .
You can use Line Tool Or Rectangle tool to plot this on charts .
2/n
Types of Support Resistance 1. Horizontal 2. Moving Averages 3. Trendline 4. Psychological Numbers (100 , 200 etc)
3/n
Reversal of Polarity .
Whenever Resistance Breaks , it tends to act as support and Whenever support breaks it tends to act as resistance
4/n
What is Breakout/ Breakdown ?
✅Whenever Resistance Breaks , it is know as BREAKOUT.
✅Whenever Support Breaks , it is know as BREAKDOWN.
🛑One should check all other parameters like , Volume , relative Strength etc while trading these.
5/n
BREAKOUT/BREAKDOWN FAILURES:
Sometimes the Support Will also break and , Resistance will not Act support .
These Scenarios cant be avoided by anyone :) 6/n
Trendline :
Confused between connecting wicks or bodies while drawing a trendline ?
Our main aim to draw trendline is to get maximum points of price on a line .
It can be through wicks tails or body and there is no fixed rule ! 7/n
Trendline as Trailing Stop Loss. 1. Trending stock Tends to pullback near Moving averages and trendlines . 2. This could be areas of fresh buying or you can shift your Stop loss to upside 3. As soon as trendline is broken then you can sell a stock and take reverse position
8/n
Trendline as Trendreversal 1. You can Buy breakouts of trendline in a downtrend
once the trend is changed with emergence of HH HL structure 2. You can initiate long postion with Stop at previous swing low 3. Sometimes you may find retest on trendline also 9/n
Trendline will act as Support and Resistance
Simple Strategy of Buy Low Sell High works best combined with other buying rules 10/n : End
It took me 3 years to understand Volume Price Analysis
I'll explain in next 10 tweets
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RT for max Support
Support Resistance
✅They simply represent the 'extreme' psychological levels of fear and greed in that particular price region and time.
✅Strength of Buyers = Sellers
✅Lower volatility price congestions
7 less known Tradingview Indicators that all traders should know about
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1. @TraderLion_ Enhanced Volume Indicator
Lime Green Bars Suggests day when the stocks closes near the days high and volume greater than past 10 down volume days Suggesting Institutional Accumulation
Has Features Like :Highest/Lowest Volume in a year.
Modified version of Bollinger Bands
When price is written in blue, volatility overall is falling. When the outer bands start to fatten up in blue, a contraction signal is forming. Works with any length of your choosing
Swing Trading Strategy with Chartink Screener and Live Examples
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Step 1 : Run this Screener
✅Filters Out Stock which are in 5% range of their 52 Week High
✅ ROE, ROCE > 15
✅Above 21 ema chartink.com/screener/stock…
Step 2 :
After running the Screener you will find 100 Stocks in the list
If you want you can change Market Cap Filter , ROE , ROCE Filter which changes the no of Stocks in the Screener
Step 3 : Open each chart one by one
Assuming you take 1 min per chart , it will take only 90 mins per day for Stock screening which comes down to 45 min if you do it regularly
Step 4 : We will only trade 2 patterns