Gyaan Sansar

Support Levels Support levels are typically identified on a price chart by observing previous lows or areas where the stock or index has repeatedly bounced back after declining. These levels can act as a psychological or technical barrier that attracts buyers who believe the stock is undervalued at that price. As the Term suggests, it is the level at which the price of a security does not fall further as the demand is sufficient enough to hold the price from falling further. Supports wills always appears or form below the current market price of security. Support level or Zone ultimately gives us the reference point where the most repetitive buying (demand) has happened in the past and is likely to happen again in the market future .it is an important technical level from market participant’s point of view. How to plot Support level Identify significant lows Look for points on the chart where the stock price has previously bottomed out or reversed its downtrend. These lows represent po...

  1.   The Moving Average Convergence Divergence (MACD) The Moving Average Convergence Divergence (MACD) is a popular technical indicator used by traders to identify potential buy and sell signals in the financial markets. The popularity of the MACD indicator can be directly linked to its ability to calculate and indicate rapid short term momentum increase and decrease. The Following Picture if Chart using MACD indicator With Buy signal and Sell signal. Buy Signal When the Blue line crosses from below to above the Red, the indicator is considered bullish. The further below the zero line the stronger the signal This indicates upward momentum and suggests a potential buying opportunity. Traders often interpret this crossover as a signal to enter a long position, expecting prices to rise. It’s important to consider other factors and confirmations for successful trading decisions. Sell Signal When the Blue line crosses from above to below the signal line, the indicator considered ...