As you can see in the above graph, the stock has difficulty crossing the 29.64 barrier. So, its a support and resistance both.
The stocks normally rebounds from support and resistance. But, if it crosses that it is called a break out. Many people start buying if a stock crosses the resistance and sell if the stock crosses the support level.
Once the stock crosses the support when going down, the support becomes resistance and vice versa.
Trading on the basis of price is called Price action. Sometimes, also call it naked trading. We will talk about some price action patterns in the coming posts. Those price action pattern will allows us to have good probability trades.
0 comments:
Post a Comment