How to Use Support and Resistance in Trading

Because Technical Analysis Is Not An Exact Science, It Is Useful To Create Support And Resistance Zones. Each Stock, Commodity Or Currency Has Its Own Crowd, And Analysis Should Reflect The Behavior Of Crowd On Chart In The Form Of Price Patterns.


Sometimes, Support And Resistance Works Well As Levels But Sometimes You Have To Use Them As Zones. General Rule For Support And Resistance Zones Is More The Tighter The Range, The More Exact The Level Is.


For Examples If The Trading Range Extents Less Than 2 Months And The Price Range Is Relatively Tight, Then Use Support And Resistance As Levels.

But If a Trading Range Periods Many Months and the Price Range Is Relatively Large, Then It Is Best To Use Support and Resistance as Zones. These Are General Guidelines, And Each Trading Range Should Be Tried On Its Own Facts.

The Author

Pramod Baviskar

Professional Market Trader And Owner Of Dalal Street Winners Advisory And Coaching Services. Working Since 2007 And Online Presence Since 2010. We Provide Highly Accurate And Professional 1 Entry And 1 Exit Future, Option, Commodity, Currency And Intraday Stock Tips On Whatsapp With Live Support And Follow Up.
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