In the Below Chart Representation, we can see that the Price movements are between Support and Resistance levels, at point 2 the stock is finding good support and then it breaks the Resistance levels. Now the earlier Resistance level, becomes the Support level for that stock, (point 3), now the stock has a new resistance level at point 4.
This means, the stock can find the support level or resistance level, once the support or the resistance level is broken, then that level transforms into a new support or resistance level.This is very important for a day trader, as this forms the entire trading method for any day trader. Based on these support and resistance levels, there are many successful day traders in Indian Markets.
That’s all for today, we will join you with a new Trading Method tomorrow.
Thank you for joining us in this discussion
Happy Evening!
Day Trading Analyst
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