Support is an imaginary price, where trader is interested to buy the stock or commodity. Resistance is an imaginary price where trader is interested to sell stock or commodity.
Key points to Learn
1) Selection of parameters, which correlates different indicator used in same time frame and correlates moving averages used in different timeframe i.e. correlation EMA of higher time frame with EMA of lower timeframe.
2) Method to understand early buy and sell signal i.e. Moving average about to give buy and sell signal.
3) Learn to make use of different trends for trading purpose. Method to find action price, stop loss, target by using trend. Learn to take precautions for each trend.
KEY POINTS TO STUDY
1) Learn methods to find buy and sell signal at lower prices.
2) Learn to take benefit of bullish & bearish divergence for trading purpose.
3) Learn to make use of divergence in selection of scrip for getting more profit.
4) Learn to find higher target for scrip.
5) Learn to modify the parameters with market conditions.
6) Learn to find trend with conditions of
7) Selection of parameters which correlates with other indicator and different time frames.
Key Points to Learn:
1) Learn to select different parameters for different purposes.
2) Make correlation of MACD and RSI for buying and selling signal.
3) Learn to understand actual oversold and overbought region
4) Learn to understand early buy and sell signal.
5) Learn to make benefit of divergence for trading purpose.
It is important to remember that overbought does not necessarily indicates time to sell and oversold does not necessarily indicates time to buy. Once a security becomes overbought or oversold, traders should wait for a signal that a price reversal has occurred. When again stock comes in overbought region then we have to go for short sell.
It is the best to use with a MACD indicator to give you more comfort that you are trading with the trend.
If seven days parameter is used then it will be very easy to trade