LTI chart has shown a very beautiful respect to areas of support and resistance. Many learning points in this chart.
1) Resistance area is the area where selling pressure takes over the buying and price retraces from there until and strong breakout happens with good volumes. Once this happens the same area act as a support.
2) Support area is the zone where usually buying takes over the selling pressure and the price recovers and move up until a newly found resistance area is reached.
3) In between this zones we find many candlestick patterns to take a trade, either bullish one at support area or bearish one at resistance level. Also we can look for TL break outs or other bullish breakout pattern (like a cup a d handle inthis chart) in the process of price recovery or retracement.
4) A price consolidation near an important resistance zone with relatively lesser volumes is usually a sign of potential good breakout, like LTI gave in last session. Now this broken resistance zone can act as a future support area unless a breakdown happens.
Visit the previous chart in the link below.
Thanks
1) Resistance area is the area where selling pressure takes over the buying and price retraces from there until and strong breakout happens with good volumes. Once this happens the same area act as a support.
2) Support area is the zone where usually buying takes over the selling pressure and the price recovers and move up until a newly found resistance area is reached.
3) In between this zones we find many candlestick patterns to take a trade, either bullish one at support area or bearish one at resistance level. Also we can look for TL break outs or other bullish breakout pattern (like a cup a d handle inthis chart) in the process of price recovery or retracement.
4) A price consolidation near an important resistance zone with relatively lesser volumes is usually a sign of potential good breakout, like LTI gave in last session. Now this broken resistance zone can act as a future support area unless a breakdown happens.
Visit the previous chart in the link below.
Thanks
