Let’s Go Then.
This Trading model is based on price Action Behavior @ Identified levels. Few Basics we need to cover before we move ahead –
Dynamic & Static S/R i.e. Support & Resistance
Static S/R – Support & Resistance
Dynamic S/R – Support & Resistance
In an Uptrend, Price breaks a particular level & finds support at a newer/higher level. Earlier resistance then becomes support.
In a downtrend, opposite is True. Price normally moves in a range until it breaks through. A new area of range will start & earlier support will now become resistance.
We have been taught in every TA (Technical Analysis) class that “Buy rising stocks, they will always go Higher due to Demand” & so on..
In real life scenario, we end up buying bargained items & want to sell things/possessions at a higher price than our price! So why is this different in Trading & Investment?
This is exactly what Professionals Do! This is what those professionals or Big Fishes do different than our Retail Crowd!! They buy LOW & sell HIGH! Exactly same as everyone did in COVID period & likewise our normal veggie seller at the corner of our neighborhood shop does !! Let’s understand these basics of Demand & Supply in our next Chapter.