Support and Resistance Types

Support and Resistance Types

Support and Resistance Types

1. Candle closing above the previous candle with increasing volume forms support.

 

2. Candle closing below the previous candle with increasing volume forms a resistance.

3. Volatility Support

Two red candles followed by two green candles form a support and two green candles followed by two red candles form a resistance.

4. Open Price Resistance

Scanner Link:

https://chartink.com/screener/open-price-resistance-1-1

When price rejects from the previous day’s high and closes below the previous day’s high, the previous day’s high acts as a resistance. Open and close should be below the previous day’s high. This levels can acts as a support and resistance.

5. Open Price Support

When price rejects from the previous day’s low and closes above the previous day’s low, the previous low high acts as support. Open and close should be below the previous day’s high. These levels can act as support and resistance.

Scanner Link:

https://chartink.com/screener/open-price-support-1

6. Monthly high low as a support and resistance.

Monthly levels are very important levels and we can use them as support and resistance.

 

7. Quarterly High Low as Support and Resistance.

Very important levels. We must consider these levels in our trading.

Quarters: (JAN FEB MAR), (APR MAY JUN), (JUL AUG SEP), (OCT NOV DEC).

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3 Comments

  1. avatar
    zovre lioptor says:

    Virtually all of what you mention happens to be astonishingly accurate and it makes me wonder the reason why I had not looked at this in this light previously. Your piece really did turn the light on for me as far as this specific topic goes. However at this time there is one particular factor I am not really too comfy with so while I attempt to reconcile that with the central theme of your point, allow me see what all the rest of the readers have to say.Nicely done.

  2. avatar
    rAMESH bABU says:

    SIR THANKS FOR THE STRATEGIES. AS PER OPEN PRICE SUPPORT KOTAK MAHINDRA BANK IS CLOSED ABOVE PREVIOUS DAYS LOW. AS PER OPEN PRICE RESISTANCE TOO KOTAK MAHINDRA BANK CLOSED BELOW PREV DAY HIGH.
    KINDLY EXPLAIN WHETHER WE CAN EXPECT TO BUY IF IT BREAKS PREV DAY HIGH
    OR SELL IF IT BREAKS PREVIOUS DAY LOW
    OR IS THERE ANY EXPLANATION FOR THIS TYPE

    1. avatar
      sandesh.k0101 says:

      Good observation. Both high and low will work as support and resistance. This is our engulfing pattern. If price open inside the range, wait for the price for support or resistance confirmation.

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