Identification of Support and Resistance levels are very important:
It may be a Prior high or low, trend line, Moving average or most recent high or low.
If a Bullish Candle appears at the Support, it increases the potential of the uptrend to resume, whereas a Bearish candle at the Resistance increases the potential for the downtrend to begin.
The Previous Supports may now act as New Resistances and Previous Resistance now as New Support.
A break of Support or Resistance on a Closing Basis is considered more important than on an Intra day basis.
A sideways trend in Japanese terminology is called as BOX Range. Close of real body above or below the range is of vital importance.
It may be a Prior high or low, trend line, Moving average or most recent high or low.
If a Bullish Candle appears at the Support, it increases the potential of the uptrend to resume, whereas a Bearish candle at the Resistance increases the potential for the downtrend to begin.
The Previous Supports may now act as New Resistances and Previous Resistance now as New Support.
A break of Support or Resistance on a Closing Basis is considered more important than on an Intra day basis.
A sideways trend in Japanese terminology is called as BOX Range. Close of real body above or below the range is of vital importance.
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