Support and Resistance Trading Strategy | Technical Analysis Free Course Part 2
Hello friends, I welcome you to your YouTube channel Everything Hindi. Today we are going to talk to you about Support and Resistance. And what we will talk about today about support and resistance, this will help you to find out the movement of the market in the coming time.
Because Support and Resistance plays a big role when you want to tell the movement of the market. However, by including many things with this, the movement of the market can be traced. But it plays an important role in figuring them all out. Today in this video we will go from basic to pro-level for support resistance How do support resistance work, how to apply it, if you are confused in applying it, then in this video, we will tell you how to apply it accurately? And that you have to follow exactly in the chart which we will show you I will tell it's basic and will cover one thing in this video and on which chart you can apply it and how to use it on your mobile, all these things are going to be covered in this video. Friends, I am Ajay and today I am going to talk to you about support and resistance. Support and resistance also helps us where to place stop-loss, where to start buying and where to sell It helps to tell all the things, so first know what is support What is support for stocks and coins? Wherever the coin comes at a point and touches that level and takes a bounceback from there.
We call it support and resistance means that where any coin goes up and starts coming back down after hitting it. So this is support and resistance. An example You understand as we are climbing a tree and have climbed a lot And are sitting on a branch and the branch on which we are sitting is acting as a support for us and the one we are trying to climb by holding it, which is a little higher, the one we are constantly trying to climb, it is the resistance for us right now.
And when we reach that branch then it will be our support In animation, we all understand what I am trying to say so that it becomes more clear after that we will apply all these things on the chart. So here, first of all, we create, for support and support, we have drawn a line here. This line will act as support for us, after that we create resistance. This will be our resistance and we colour it red, it will work for us as resistance and the bottom line will work for support. Now let's see how our stock moves by moving it.
Look, the stock we have here started from here and it is going up and it has got the resistance here. This means where it has stopped why it stays here and why does it take support at the bottom support, we will explain this theory further. From here it has got resistance and after hitting there it has come back slowly and it again took support from here and then its story went on and the stock started moving up and down in this manner throughout the week. After that comes a theory that breakout can be up or down. Both these things are the theory of the next chapter of us, now today we will talk only about support and resistance. You can understand from this animation that the red line above is working as our resistance, which means that it is acting as an obstacle.
But the support which is below is supporting the stock, now it has 2 levels, this is our green colour support, we call it s1 After that there is another support, we can show it from here and colour it dark green. We have told this to explain that there is no point in the rest of the colours, the one that is light green above the colour is S1 and what is below, we call it S2. S1 means to support one and S2 means to support two, that above we create another resistance The first one in this is resistance one and the top one is resistance two. So here's how this stock will face now, here you guys again understand that our stock started from here. How Support One to Support Two Works Now what happened here, instead of selling our sellers, they bought more, then our stock went up, which meant that the resistance was broken here.
And here the second registration went to him, now this change will continue according to the order of our seller and buyer here. Next here, either the stock will go up by considering this resistance as support and if the selling increases then you will bring down the stock. Now when people come down there will be very panic, then this support will also break and the next support which is below will get support. And from here the support will bounce back again, which means we mean that the support we have That's because when resistance is broken, where will the next go when the market crashes, then the question comes to the mind of the people that where will the market go now. Now we assume that the market was here and it was going on like this, then we were wondering where the next move of the market would go.
But the support it had created in the market has broken and it has come down here. Now the next support is ours and when this support is also broken, the market will find the support below. In this way, there are supports in the step and there are resistances in the step itself the first support is called S1 and after that, the support is called S2.
The first resistance is called R1 and the resistance that comes after it is called r2. In this way, people ask how high the market can go from here and this is our resistance, if this break happens then this is the next resistance. Its move can go even further and if more volume comes into the market then it will break this resistance also. The registers that are there are made to break 99% but there are other factors working behind that which we will talk about in the upcoming video which will contain many things like moving averages.
Moving average volume and many more things with which we will relate this, then we will understand how all these things work. By this you understand S1 S2 R1 r2 If the market is going down then how far will it come And if it goes after that, till where will it go. If the market is rising, then how far will it go, after that the resistance which is next, after that, if you want to go further, then it will go till here. And after knowing this, there will be a registration after that, she will go there. The way we can understand how to support resistance works Now let's apply this in the chart and before that let us understand when the support is created. When resistance is created, when does it stop, why is it formed, does anything happen? The principle of support and resistance is that where the support is taking This means where the support is coming, it is the green line there.
Why is it taking support here because many buyers have placed their buy orders here? When it comes here we will buy it. Maybe we didn't think of you but very true All the buyers have identified the area that's where the stock comes in and then goes up Why don't we put our buy order here and when it bounces back then we get the benefit of that bounceback. And the reason behind this is the reason why we consider it as the above resistance, the reason behind this is that people start selling their stock as soon as it touches the R1 above. And when you sell, the stock is weak and when that happens it starts coming down. And at the same time if the reversal buying has come too much ie in the market that they are supporting And spread the news there that we will not support bitcoin or whatever happens, it will go on breaking all the support. What we have to understand here is that we have to create our support and resistance in the chart which is our client so that we can understand where the next move which it will go down will go. Similarly,
if the resistance goes up, where will it go? Now let's talk about how to play all these things on the running chart and which one to choose. I suggest you two or three websites to choose the chart one investor.com and the people who usually use it is every tradingview Whose link is in the description, by going where you will easily and accurately go to that website because scammers are roaming around a lot After going here, after doing a little verification, you have to log in to such a page, after that there are many features in it. This website will look very hectic to you, we will gradually learn about it and if the need is felt more, then once I will make a dedicated video for it so that I can explain it to you by opening one point. Right now we put support and resistance on the market that is going on at the moment. And in today's date, the market has fallen a lot in the night and has stopped here, why has it stopped, what is some reason, what is the support, what is the next support, we see all these things right here at this time.
This we have opened the chart of bitcoin this is the chart of the candlestick of bitcoin nowhere if we zoom in a bit we will see in more detail that it started to rise a bit almost the night Showed a pretty good rally and then fell down quite a bit We are talking about this because it will be a little easier to put support and resistance. Right now we create support here where bitcoins mostly stop To understand the thing we have to go back a little bit and you can see here which wig is coming We don't have much to do with this video, we have to touch the maximum part of the last body of the candle and the part which is above, at that time we say that you have made the right support and resistance. Sometimes it is missed in many places, sometimes somebody is cut but in the majority, it will touch the down layer or upper layer. Here now we start installing the support, for that here, you can go to the second option and choose the horizontal line.
After that, wherever you click, your support line will be created, now we raise it a bit. Now after applying it, let's see where it is touched or whether it is right or not. Now here it is touching well in three places because you see here support was taken here and we have opened 4-hour candle here and every single candle here is 4 hour After 4 hours the next candle was formed where it was made, so here we have got support at four places and we see if we have got to see this kind of support before. Here you can see that 1-2 candles are getting cut at 1 to 4 points because there is panic selling there. So that means this is our valid line, now who will we consider as next support, we put it here and after that, we will verify whether it is installed correctly or not or whether the maximum majority candle is supporting it or not. See it is supporting here, after that it is supporting here too and see this is where bitcoin has come and stuck.
Meaning it has got stuck here while falling and then the green signal has started to form. Now we have made two support candles here, let's assume S1 as the top one and S2 as the bottom one. Now if we make a distant registration, then the first registered one which will be ours will be made here because the majority of the candle is touching here. There is a shortcut, pressing CTRL + H brings a horizontal line, now we will validate it here whether it is correct. In this way, you can go back and verify whether the support you have installed is correct or not.
After that we put R2 on it, although there are many R2's here too, I will tell in the next video, so now I have made 55500 support. When bitcoin goes above 50000, it becomes very strong and remains below it, so why is it a little week. See here it has been used many times as registration and many times as a support, most of the things here are working in the same way. So in this way we call it R1 r2, S1 and S2 Now let's talk about how far it will go. And people will have to ask where can bitcoin go after that, you can also install it yourself, on mobile, you download the application of tradingview. You download the application, fill all the details in it and then open it in the same way, there you will easily learn everything, then it will happen that whenever the market crashes completely, then it will understand how the market will bounce back from here Which next support is left and if it is going up, then which can be the next resistance.
All these things are very simple, support and resistance are the same, now we talk about the new thing. The new thing means that this support is only part of the resistance on which we talk about the safe zone. Apart from support and resistance, many people also want to know the safe zone.
Suppose if there is a resistance when the wig goes in it, it touches it but sometimes it also goes under it. What can be the safe zone, for our buying and selling, we understand it by zooming here, we have zoomed this chart here. And what can be the safe zone of any buying and selling? For this, we have selected the box here and we have drawn this box from here to there. Now as we people have to find the safe zone, then we prepare a box to find it.
Now there is both support and resistance inside this box. But many times the candle comes just by touching it and sometimes it is not even able to touch the support, then we make a secure box and whenever you have to buy and sell
2022-01-23 11:39
