Pivot, Resistance & Support Level

By Aakash 5 Comments 12 Dec 2018

Pivot, Resistance & Support Level Analysis

Lets understand about Pivot, Resistance & Support (The three Pillers of Chart Analysis).

Pivot, Resistance & Support

  • Yellow doted line is a Pivot Line.
  • Upper Purple Line is a Resistance Level.
  • Bottom Purple Line is a Support Level.

This Pivot, Resistance, Support, Yesterday High & Yesterday Low.....all levels help you to understand the Trend of the Stock.
There are some rules to understand that....

Rule 1: Market Goes Up :

If the market opens above the Pivot Level & below the Resistance Level or Yesterday High with Green Candle. Its target is next upper level that is Yesterday High or Resistance Level.


Rule 1: Market Goes Up

Rule 2: Market Goes Down :

If the market opens below the Pivot Level & above the Support Level or Yesterday Low with Red Candle. Its target is next lower level that is Yesterday Low or Support Level.


Rule 2: Market Goes Down

Rule 3: Unpredictable Market:

  • Case 1 : If the market opens above the Pivot Level with Red Candle then avoid trading on such conditions.
  • Case 2 : If the market opens below the Pivot Level with Green Candle then also avoid trading on such conditions.
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