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Showing posts with the label resistance

Entry and exit levels

For every trader/investor in the stock market , the first challenge is to identify the entry and exit levels, with a proper analysis of risk. 2nd challenge is executing the decisions , without being influenced by emotions while on trading screen , others opinions etc. Its true that buy right & sit tight approach is perfect . however , when one uses support and resistance for entry or exit , probability of higher returns become more pronounced. Timing is very important in stock market . there are many approaches to identify support and resistance based on technicals and others . two important approach to identify SUPPORT AND RESISTANCE are based on ma ( moving average ) and price action. Each have their own pros and cons. 1. Moving average Pros -    mostly ma levels are obeyed by non volatile stocks under normal conditions Cons - not applicable in volatile stocks illustrations - Bajfinance for period 2017 to may 2019 The 50 ma on weekly cha