How to Take Advantage of Support and Resistance Strategies

Jyoti Bansal (NCFM,NISM Certified Technical Analyst & Investment Adviser )
A free video tutorial from Jyoti Bansal (NCFM,NISM Certified Technical Analyst & Investment Adviser )
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Stock Trading Strategies : Technical Analysis MasterClass 2

Stock Market Technical Analysis Strategies for Stock Trading , Options & Forex , Swing & Day Trading + Chart ASSIGNMENTS

07:57:21 of on-demand video • Updated November 2020

  • Properly Plan and Know the Max Profit and Loss in Advance
  • Make Maximum Profit at Minimum Risk
  • Trade any Stock with a specific strategy that suits your trading concept
  • Use these Skills in any Stock, Index, Forex, Cryptocurrency etc
  • Use your Existing Technical Knowledge in the Most Efficient Way and Advanced way
  • 4 Assignments with fully explained vedio lectures
English Welcome to our next lecture in this lecture we will learn how to take advantage of support and resistance strategies Today I also got a question asked by one of my students In which he was slightly confused about the Support and resistance trend line we take the advantage of support and resistance strategy when stock moves sideways And for this it is very important to know the accurate support and resistance level so that we make our entry and exit position So in this lecture we will take different examples and see the importance of support and resistance level as we know that when resistance level is penetrated successfully it becomes the new support level and when a support level is beached down ward It becomes a resistance level for the prices So for the execution of our strategy is first of all we should make sure that the recent support and resistance level has any importance or not For Example it can be of Fibonacci level it can be a 50, 100 or 200 day moving average level It can be an uptrend Line or down trend line level or it can be a psychological level that has an importance in the past In This chart of Apple incorporation after making it's all time high stock retraced upto this level then again test the resistance level So we just draw these two trendlines now we will find out the importance of this level If we Apply the Fibonacci tool to the last peak we can easily see that this level is the 23. 6 level of fibonacci tool So we can execute our support and resistance strategy first here For this we will shift our chart to hourly time frame see Prices are touching this resistance line and then this support line So Again when prices are touching this support line we can take advantage of strategy 1 Here we can make our buy position but if we see on RSI, RSI is below 50 so we will not make any buy position here Again prices are above this support line after making a low below this line so we can make our buy position here but but if we see on RSI, RSI here also it is Below 50 level so Will not make any position here also Again See here at this candle This candle is above the support level and we get a next candle that is also bullish candle and this candle is Is above 50 and 100 moving average if we see on RSI, RSI is above 50 level at this candle so we can make our buy position here Now We will draw a trendline As long as the prices are above this trendline you can hold our buy position and at this point prices Are touching the resistance line so will exit from a long position By making a buy position here we will exit here Now again prices are below this level And we are getting A green candle above this support line And but if we see on RSI, RSI is above 50 level so we can make our buy position here by employing our Stop loss at the low of this red candle And we will draw a trendline for our position this is the trendline Which just draw the initial two points And then extend the trend line No prices are touching this resistance line will exit from a long position Now see here Prices are retracing up to this level Here we are getting a big red candle Now prices are trying to go in upward direction but this time this support level is acting as a resistance level So we can execute here our Strategy 2 but if we see on RSI, RSI is below 50 level And it is in oversold range so we can execute our Strategy 2 we will employ a stop loss level at the high of this red candle Slightly above this resistance line We Will make a short sell position here when we get a gap down opening You can see here we are getting a gap down opening So we can make A short sell position here now we will draw a trendline for our position This is the trend line And as long as the prices are below this trendline we can hold a short sell position This was our level of short sell position And here Prices are breaching Thiss trend line in upward direction so will exit here Again now prices are moving upward and this resistance line now Is acting as a support line for this green candle And RSI is above 50 level and in overbought range So we can make our buy position here By employing a stop loss at the low of this candle this green candle And then we will draw a trendline this Is the trend line As long as the prices are above this trendline now This right candle is breaching this trend line in downward direction so will exit from our by position here This was our stop loss This was an entry point and At the breaching point Of this red candle we will exit from our buy position we will take Another chart This is the daily chart of Facebook Incorporation here When prices peak this level and retrace Up to the extent of 50 DMA And we get a trendline at this level So we will draw a trendline Now this green candle is breaching this resistance level And now It becomes a support level for the candles You can clearly see that We are getting 12 3 And 4 4 candle at this level so This level is quite important level we can execute strategy 1 here So For The application of our strategy we will shift the chart to hourly time frame Chart This was the resistance level and now it is the support level Hear when prices retrace up to this trend line and when RSI is above 50 level This is a level when RSI is above 50 so we can make our entry position here By taking a Stop loss at this level at the low of this green candle Now we will draw a trendline As long as the prices are above this trend line we can hold our buy position So Here this red candle is breaching the trend line so we will exit from our buy position Again now prices are touching this support line And we are getting another candle that is the green candle RSI is above 50 level so we can make our buy position by employing a stop loss At the low of this candle Again we will draw a trendline And will hold our by position as long as the prices are above this trendline Here we will exit from our buy position here Also we are getting another signal and other buying. point When we get a green candle above this trend line And RSI is above 50 levels so will make entry point here if we draw the trend line this Is the trend line we can hold our position as long as the prices are above this trendline we will exit at this point Again we are getting another point but if we see on RSI, RSI is below 50 level so will not make any position any buy position here We can make our by position at the point when we are getting RSI above 50 level at this level And also this green candle is above this 50 and 100 Moving average So we can make or buy position here And if we draw the trend line for the position This Is trendline so we can hold by making by position here you can hold the position up to the extent of this Point Will take one more example this is the daily chart of Sun pharmaceuticals and as we can see the stock is in downtrend And Here see this level When prices make a pull back rally up to this level then again prices Make a downward move and we are getting this Level If we see this level prices are taking rest on this level in the past also And If We apply the Fibonacci tool On this last swing We can See that this level is 61.8 level so this level is an important level we can execute Support and resistance strategy here This is the resistance level for the prices And Now prices are Breaching this level This is also a down trend line for the prices so This level is a very important level if we shift the chart on hourly time frame See this is the resistance level now prices are above this level and Again going back to the range so By taking a stop loss at the high of this candle we can make our Short sell position at the point when RSI is below 50 level at this level we can make a short sell position this is a short sell point Now we will draw a trendline for the prices As long as the prices are below this trendline we can hold our short sell position Again now prices are Above this level And we will make a short sell position when RSI is below 50 Level At this point RSI is above 50 At this point Also RSI is above 50 At this point RSI is above 50 Now at this candle This is the candle This red candle this one At This candle RSI is below 50 level so we can make a short sell position here By Employing a stop loss at the high of this red candle Slightly about this resistance Level And then we just draw the trend line for our position This Is the trend line We Can hold our position as long as the prices are below this level We will Exit here Again here prices about this resistance line And now They are below this resistance line and here RSI is below 50 At this candle so we will make entry At this candle Not here at this candle we will make a short sell position And Now we will draw a trendline So as long as the prices at below this level we can hold our position at this point we will exit from all short sell position In this way we can execute support and resistance strategies If we get the important support and resistance levels