Dear Traders,
this is the time tested approach to trade any instrument, be it stocks,forex or commodities etc.
Yes we are talking about ROUND NUMBERS. They are one of the most powerful tools yet most underrated by many traders.
The Big Fishes always look at them. They are professionals who control these levels.
These levels are the best support and resistance levels.
____________________________________________________________
For any stock less than 100 Rs,
Major Psychological levels are : 10,20,30,40,50,60,70,80,90,100.....
numbers ending with 0
minor psychological levels are: ending in 5's
_____________________________________________________________
See below the chart of RCF 5min,
Major Round number 80 is taken with huge volume.
note the very less volume on correcting bar
____________________________________________________________
I have a Target 1 as 85 and then 90
targets should be placed on minor psychological levels.____________________________________________________________
Any fall on monday is a Bargain price to buy
keeping in mind the stop of below 80 on 5min closing bar basis
_______________________________________________________________
This post is only for educative purpose.
_______________________________________________________________
Happy and Safe Trading,:thumb:
Winston
this is the time tested approach to trade any instrument, be it stocks,forex or commodities etc.
Yes we are talking about ROUND NUMBERS. They are one of the most powerful tools yet most underrated by many traders.
The Big Fishes always look at them. They are professionals who control these levels.
These levels are the best support and resistance levels.
____________________________________________________________
For any stock less than 100 Rs,
Major Psychological levels are : 10,20,30,40,50,60,70,80,90,100.....
numbers ending with 0
minor psychological levels are: ending in 5's
_____________________________________________________________
See below the chart of RCF 5min,
Major Round number 80 is taken with huge volume.
note the very less volume on correcting bar
____________________________________________________________
I have a Target 1 as 85 and then 90
targets should be placed on minor psychological levels.____________________________________________________________
Any fall on monday is a Bargain price to buy
keeping in mind the stop of below 80 on 5min closing bar basis
_______________________________________________________________
This post is only for educative purpose.
_______________________________________________________________
Happy and Safe Trading,:thumb:
Winston
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