We have been explained day and night , that the SWING HIGH is the RESISTANCE , and the SWING LOW is the SUPPORT .
In the above example of HINDPETRO on 20 april 2020 a swing high is at the rate of 228.50
the same resistance was broken on 22 june 2020.
my point to explain is in this new ALGO trading world, how much such SWING HIGH and SWING LOW holds importance as support and resistance ,
this can give you areas , but in this new age of ALGO trading , computer do not understand any ZONE you create as S/R based on such areas any more.
ALGO understands a specific command , and specific rate , as soon the stock reaches that rate it does what ALGO is commanded to do .
at the swing high , the smart traders know that every single RETAIL buyers will be ready to BUY and that what it needs , VOLUME , participants to SELL .
and on 22nd june IT gave a breakout and maximum traders , technical annalist would start giving buy call , for tgt of next swing high , but what happen the next week followed . from 29th june the stock reversed i.e 242.10 to 204.05.
but had you known that the resistance is not the swing high but WEEKLY RESISTANCE was 248.25 and DAILY resistance was 244.05
one would avoid taking buy on those weekly breakout SWING HIGH AREAS .
I am not trying to say that it does not work , as OLD IS GOLD , but in age of ALGO one needs to upgrade oneself to new theory .
which gives you and edge , as every one knows each kind of patterns , name it FLAG, TRIANGLE , DESCENDING ,ASCENDING BREAKOUT , now the world is about ALGO and
the coders have fit every kind of traps for us to get trapped for their maximum benefits .
If you want to learn such dynamic levels and trading strategy , get in touch , yup it will be highly expensive , but yes every penny will be worth your time .
specially you can observe my trade setup which i will upload here.
I am not a SEBI registered analyst
all traders here will be for educational purpose only .
No loss/profit will be my concern
investment carry huge amount of risk , which can end of loosing part or full capital .
trade at your own risk.