How to Draw
Support , Resistance and Trendlines ?
A Foundation of Stock Market !

A Thread 🧵
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What is Support and Resistance ?

⏫Support is an area for price , where it halts due to demand of the stock at that price .

⏬Resistance is an area for price ,where it halts due to Supply of the stock at that price .
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How to Draw S/R ?

You can use Any time frame for Drawing S/R and it works on all time frames .

Whenever the Price Reverses from an area for more than 2 times that area can be called as S/R .

You can use Line Tool Or Rectangle tool to plot this on charts .

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Types of Support Resistance
1. Horizontal
2. Moving Averages
3. Trendline
4. Psychological Numbers (100 , 200 etc)

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Reversal of Polarity .

Whenever Resistance Breaks , it tends to act as support and Whenever support breaks it tends to act as resistance

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What is Breakout/ Breakdown ?

✅Whenever Resistance Breaks , it is know as BREAKOUT.
✅Whenever Support Breaks , it is know as BREAKDOWN.

🛑One should check all other parameters like , Volume , relative Strength etc while trading these.

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BREAKOUT/BREAKDOWN FAILURES:

Sometimes the Support Will also break and , Resistance will not Act support .

These Scenarios cant be avoided by anyone :)
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Trendline :

Confused between connecting wicks or bodies while drawing a trendline ?
Our main aim to draw trendline is to get maximum points of price on a line .
It can be through wicks tails or body and there is no fixed rule !
7/n
Trendline as Trailing Stop Loss.
1. Trending stock Tends to pullback near Moving averages and trendlines .
2. This could be areas of fresh buying or you can shift your Stop loss to upside
3. As soon as trendline is broken then you can sell a stock and take reverse position

8/n
Trendline as Trendreversal
1. You can Buy breakouts of trendline in a downtrend
once the trend is changed with emergence of HH HL structure
2. You can initiate long postion with Stop at previous swing low
3. Sometimes you may find retest on trendline also
9/n
Trendline will act as Support and Resistance
Simple Strategy of Buy Low Sell High works best combined with other buying rules
10/n : End

More from JayneshKasliwal

A thread of threads on 3 indicators

1. Moving Averages Ultimate Guide
2. All About ADX
3. Super Performance Using RELATIVE STRENGTH

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Moving Average


All about


Super Performance Using RELATIVE STRENGTH
Detailed Study of Stocks that became 5X in past 2 Years
A Mega Thread🧵

Concepts :
Relative Strength
Stage Analysis

Retweet and Comment If you want to attend a live session on the same !


We have Got around 86 Stocks that became 5X in 2 years
These Belonged to various sectors and Groups

Excel Link for List of Stocks
https://t.co/jESOUM32b5
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All stocks had few things in common :

Stocks doubled Before entering into Stage 2 Uptrend
52 week RS was positive in stage 2
90% stocks even gave all time high breakout after Stage 2
60 Stocks had market cap less than 1000 Cr

Examples : OLECTRA , PGEL
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So What is Relative Strength ?

Relative strength is a strategy used in momentum investing and in identifying value stocks.

It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
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How to Apply ?
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 52 period
Use Weekly Chart
4/n
𝟱 𝗧𝗿𝗮𝗱𝗶𝗻𝗴𝘃𝗶𝗲𝘄 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿𝘀 𝗮𝗹𝗹 𝗧𝗿𝗮𝗱𝗲𝗿𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗸𝗻𝗼𝘄 𝗮𝗯𝗼𝘂𝘁:
𝗣𝗮𝗿𝘁 𝟮

🧵 Thread 🧵
Retweet And I will Link a 36 Page PDF

𝟭. 𝗔𝗱𝗱 𝗙𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹𝘀 𝗼𝗻 𝗰𝗵𝗮𝗿𝘁
🔸 Link:
https://t.co/zG165Xa3JB
🔸 Click on the above link -> Add to Favourites -> Add on Chart from favourites and start using it !
2/20

You can add financials from many fundamental criteria's like
🔸 Cashflows
🔸 Income Statements
🔸 Balance sheets
🔸 PE,PB ratios
🔸 Marketcapitlization
🔸 Statistics
3/20


How to change Settings:
🔸 There are 8 columns you can basically select any financial you want
🔸 You can select quarterly or Yearly values and can also write
🔸 The names of the financiaLS Example : EPS Qtr3
🔸 You can Change colours , font size
4/20


𝟮. 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿 𝗥𝗮𝘁𝗶𝗻𝗴𝘀
You cannot track each and every indicator like ( 𝗠𝗼𝘃𝗶𝗻𝗴 𝗔𝘃𝗴𝘀 , 𝗥𝗦𝗜 , 𝗠𝗔𝗖𝗗 ) etc , you can use plot this custom strategy to understand whether the trend is positive or negative of those indicators
5/20

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