It moves back till point 3 which is now the psychological resistance level and would again see profit booking by weak hands.
In this thread, I will explain to you the psychology behind the cup & handle pattern. The attached chart is of Balaji Amines.
Point 1 = Profit booking by many traders and fresh short positions opened taking the stock down till level 2 where there is no more selling
It moves back till point 3 which is now the psychological resistance level and would again see profit booking by weak hands.
More from The_Chartist 📈
Syngene - Double Top triggered today after a triangle breakout. 1%*3 Box size and reversal. https://t.co/pBY2JOwhjN
Syngene - Same concept. Price contraction. Shift from weak to strong hands through repeated volatility contractions. I can well write one whole page explanation on it. Look at the volume pump today. A big hand will never let you ride with him. Make sure you are there at the party https://t.co/RN8sQYzdBg pic.twitter.com/AShKWnQeJt
— Steve Nison (@nison_steve) July 15, 2021
I have mentioned before too good material on RS
1. A Book written by Sir @Prashantshah267 as attached
2. Research paper by @MebFaber April 2010
3. A book written by Sir Robert A. Levy as attached
4. Webinar by Sir @premalparekh with @vivbajaj
5. Video by @jfahmy on YT https://t.co/xg4fe09ImL
1. A Book written by Sir @Prashantshah267 as attached
2. Research paper by @MebFaber April 2010
3. A book written by Sir Robert A. Levy as attached
4. Webinar by Sir @premalparekh with @vivbajaj
5. Video by @jfahmy on YT https://t.co/xg4fe09ImL
Hi sir ..can u post some articles or write up on relative strength ,how to use same and what is the criteria .. kindly help
— Nanda (@vk_nandagopal) December 11, 2021