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

A Thread ๐Ÿงต
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What is Support and Resistance ?

โซSupport is an area for price , where it halts due to demand of the stock at that price .

โฌResistance is an area for price ,where it halts due to Supply of the stock at that price .
1/n
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 .

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

3/n
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 ?

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

๐Ÿ›‘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 :)
6/n
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
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๐—•๐—ฎ๐—ป๐—ธ๐—ป๐—ถ๐—ณ๐˜๐˜† ๐—™๐˜‚๐˜๐˜‚๐—ฟ๐—ฒ๐˜€ ๐—ง๐—ฟ๐—ฎ๐—ฑ๐—ถ๐—ป๐—ด ๐—ฆ๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜†
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๐Ÿญ๐Ÿฌ๐Ÿฌ๐Ÿฌ ๐—ฅ๐—ฒ๐˜๐˜„๐—ฒ๐—ฒ๐˜๐˜€ ๐—ณ๐—ผ๐—ฟ ๐—œ๐—ป๐—ฑ๐—ถ๐—ฐ๐—ฎ๐˜๐—ผ๐—ฟ ๐—Ÿ๐—ถ๐—ป๐—ธ ( ๐—™๐—ฅ๐—˜๐—˜ )
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What is Rule Based Trading ?

In rule based trading you donโ€™t take trades based on what you think is going to happen , rather depend on data to tell you what can probably happen.
2/16

๐—œ๐—ป๐—ฑ๐—ถ๐—ฐ๐—ฎ๐˜๐—ผ๐—ฟ๐˜€ ๐—จ๐˜€๐—ฒ๐—ฑ
ย  1. Supertrend (5, 4.5)
ย  2. EMA( 21 Period)ย 
3. Volume(20 MA Period)
3/16

Indicator Setting
(Refer Pics)
๐Ÿญ.๐—˜๐— ๐—”:
Use 21 Period on 5 min time frame
๐Ÿฎ. ๐—ฆ๐˜‚๐—ฝ๐—ฒ๐—ฟ๐˜๐—ฟ๐—ฒ๐—ป๐—ฑ ( ๐Ÿฑ, ๐Ÿฐ.๐Ÿฑ )
4/16


๐—•๐˜‚๐˜† ๐—ฅ๐˜‚๐—น๐—ฒ๐˜€
Time Frame: 5 min
Buy only when :
๐Ÿ”ธ Banknifty is above 21 ema
๐Ÿ”ธ Supertrend gives buy and candle closes above supertrend
๐Ÿ”ธ Enter on next candle opening
๐Ÿ”ธ Volume>20 MA on Supertrend Buy Signal
๐Ÿ”ธ Take Entry only from 9:20 to 3:15
๐Ÿ”ธ Max 2 Entries per day
5/16

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A Thread ๐Ÿงต๐Ÿงต

Tested - Executed in Real - Works

Kindly Re-Tweet for Max Reach ๐Ÿ™๐Ÿ™

1) Buy a Gainer when bounce from VWAP

Condition apply to chart ink -

- Stock days' gain > 1%
- Candle Low < VWAP and Close > VWAP
- Now check chart manually

You will get list of stocks that are gainers and consolidated to bounce from VWAP

https://t.co/W7HVmFvYpy


2) Near Day High

- Top gainers make 3-4 times new High in a day
- Best to enter when it break High of one wave
- Check charts manually after you get list

This screener gives you stocks that are near day High

Apply this with Time frame 3 or 15 min -

https://t.co/ocM7Whvtdi


3) Stocks at Resistance -

Conditions to apply -

- Stock day's gain > 1%
- High of Last 3-4 candles is equal

Apply like this -


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