Analyze Support and Resistance Zones using Trend Lines
How to Interpret Support and Resistance using Indices Trend Lines Strategy
Support & resistance levels on stock indices charts might sometimes form in a diagonal way especially when the prices are heading in a upwards trend or indices downward trend.
In a indices upward trend support levels for stock indices price will form in a diagonal way that's sloping upwards - and from this upwards sloping diagonal support levels stock indices traders can then draw indices upwards trend-lines & use these indices upward trend-lines to find the support levels.
In a indices downward trend the resistance levels for stock indices price will form in a diagonal way that's sloping downwards - and from this downwards sloping diagonal resistance levels stock indices traders can then draw indices downwards trend-lines & use these indices downwards trend lines to find the resistance areas.
How to Interpret Support Zones Using Upward Indices Trend Lines
An indices upward trend line is drawn below the upward trend pattern formed by consecutive higher low, the upward trendline must connect at least 2 stock indices price lows, with the most recent stock indices price low being higher.
Since stock indices price moves upward in a zigzag manner indices traders normally draw a indices upward trendline which shows the general upward movement of the indices prices - In stock indices technical analysis we can define this upward trend-line is drawn on indices chart showing the support zones ( indices upward stock indices price direction).
How to Analyze Support & Resistance using Indices Trend Lines Strategy
To draw this upward trend we use support levels & to draw indices upwards trend correctly two support zones are needed. When stock indices price touches this upwards trend line, then indices traders will open buy stock indices trades and place indices stop-loss orders just a few points below sloping support levels - shown by upward trend line:
How to Analyze Support & Resistance using Indices Trend Lines Strategy
How to Interpret Resistance Areas Using Downwards Indices Trend Lines
A indices downward trendline is drawn above the downward trend pattern formed by consecutive lower highs, the downwards trendline must connect at least 2 stock indices price highs, with the most recent stock indices price high being lower.
Since stock indices price moves downward in a zigzag manner indices traders normally draw a indices downward trendline which shows the general downward movement of the indices prices - In stock indices technical analysis we can define this downward trend-line is drawn on indices chart showing the resistance zones ( indices downward stock indices price direction).
How to Analyze Support & Resistance using Indices Trendlines Strategy
To draw this downward trend we use resistance levels & to draw indices downward trend correctly two resistance levels are needed. When stock indices price touches this downwards trend line, then indices traders will open sell stock indices trades and place indices stop-loss orders just a few points above sloping resistance levels - shown by downward trend line:
How to Analyze Support & Resistance using Indices Trendlines Strategy
How to Analyze Support and Resistance Zones using Indices Trend Lines
