Everybody is facing trouble that:
1. When I buy stock falling down.
2. When I sell stock moving up.
So, friends don't worry we have solution for that. Today I will tell you how you can buy on fall as well as sell on rise.
Step 1. Kindly keep the suppport and resistance level on monthly basis.
Step 2. Kindly keep the support and resistance level on weekly basis.
Step 3. Kindly keep the support and resistance level on daily basis.
What you have to follow:
1. Whenever stock cmp is greater than monthly support > weekly support > daily support then trend is up
2. Whenever stock cmp is less than monthly support < weekly support < daily support then trend is down.
golden rule of support and resistance of buying and selling.
FOR BUY:
You have 2 levels - support and ressitance i.e., S1 and R1.
If r1 breaks you can buy the stock with stop loss of S1.
FOR SELL:
You have 2 levels - support and ressitance i.e S1 AND R1.
If s1 breaks you can go short the stock with stop loss of R1.
This Is Basics.
Now how to buy on dip (in falling market) but when trend is up
If cmp breaks S1 on daily basis, but the stock is trading above monthly as well as weekly support you can buy with weekly stop loss.
Now how to sell on rise ( in rising market ) but when the trend is down.
if cmp breaks r1 on daiy basis, but the stock is trading below monthly as well as weekly support you can short with weekly stop loss.