Basics are the key to understanding anything. Resistance and Support levels can be considered as the strong pillars for the everyday stock movements. In this video, you will get to know, when do resistance and support interchange their roles in daily price actions.
It is always fun and also recommended at the same time to learn things from scratch. In this video, you will learn about the basics related to resistance and support lines. Understanding this video will help you cement your foundation to learn more and more on stock market.
The fan principle is based on the use of multiple trend lines to judge a major reversal in the market. Since the fan principle is comprised of three trend lines, you might look for buying at the break of the third trend line. By that time, the fan pattern must have confirmed the breakout. Many chartists believe that in order to confirm a trend reversal, the trendline must be broken three times.
A Bear Flag is a price action within the context of a downtrend that produces an orderly price increase consisting of a narrow trend range comprised of higher swing/pivot highs and higher swing/pivot lows.
Another key trading pattern to identify trend continuation - Ascending Triangle trading pattern. Every trader must have a sound knowledge of this trading pattern.