What Are Support and Resistance?
The price of financial assets is determined by forces of demand and supply, just like in any other trading market. In financial markets, it is support and resistance levels that accurately illustrate how the supply and demand forces interact to determine the prevailing price of an underlying asset. Prices usually rise until the supply outstrips demand and that is the point of resistance, where prices will start going down. Similarly, prices will fall until demand outstrips supply and that is the point of support, where prices will start going up.
The basic strategy in the market is to buy an asset when prices are at the support level and to sell when prices are at the resistance level.
It is important to note that support and resistance levels are not exact price points, but rather zones where demand and supply can change. Support and resistance levels are closely monitored by market participants, who are all keen to take advantage of opportunities that may arise when supply or demand changes.
Types of Support and Resistance
Fixed Support and Resistance Levels
These are support and resistance levels that are fixed and cannot change. They will only be invalidated if prices manage to break above or below them. Psychological and sentimental levels, such as round numbers or previous important price points (such as all-time highs and lows), are examples of fixed support and resistance levels. For instance, in stocks, round numbers, such as $100, can provide support or resistance to an asset price. While commodities trading, rates such as $2,000 for the gold price can be considered a support or resistance level.
Dynamic Support and Resistance Levels
As the name suggests, these are support and resistance levels that change as the price and time change. These levels imply that prices are subject to new forces of demand and supply. Technical indicators, such as Moving Averages and Bollinger Bands, create dynamic support and resistance levels as the price and time change.
Semi-Dynamic Support and Resistance Levels
Semi-dynamic support and resistance levels also change as time and price change, but they change at a fixed or predetermined rate. Some of the indicators that plot semi-dynamic support and resistance lines are Trendlines, Fibonacci Tool and Pivot Points. These indicators plot support and resistance lines that change methodically as time and price change.
How to Find Support and Resistance Levels
Here are some of the ways to find support and resistance levels in the markets:
- Peaks and Troughs
This is the most straightforward way of plotting support and resistance levels. Simply mark visible highs and lows on your chart; the higher highs and lower highs will serve as resistance levels, whereas the lower lows and higher lows will serve as support levels. It is always recommended that these lines are marked on longer timeframes to have reliable support and resistance levels. - Fibonacci Levels
The Fibonacci indicator can be used in two ways: Fibonacci retracements help traders identify the best entry points when a trending market is retracing; whereas Fibonacci extensions help traders identify the most optimal target points of a trending market. In an uptrend, Fibonacci retracement lines will act as support lines, whereas in a downtrend, they will act as resistance lines. On the other hand, Fibonacci extension lines will act as resistance lines in an uptrend, and support lines in a downtrend. - Pivot Points
The Pivot Points indicator uses the open, high, low and closing prices to mathematically derive multiple lines that serve as support and resistance levels in the market. The indicator plots 7 lines: 1 pivot point (PP), 3 support lines (S1, S2 and S3), and 3 resistance lines (R1, R2 and R3). If a support line is breached, it turns into a resistance line, and vice versa. For instance, if there is an uptrend and the asset price breaches R1, the line will now act as support. - Trendlines
Trendlines form the foundation of technical analysis and can help traders trade with the trend. In an uptrend, a trendline is drawn from one particular low, connecting other higher lows and projecting the line into the future. The line then acts as a semi-dynamic support line.
In a downtrend, a trendline is drawn from one particular high, connecting subsequent lower highs and projecting the line into the future. The line then acts as a semi-dynamic resistance line.
How to Trade with Support and Resistance
Here are some of the online trading strategies using support and resistance levels:
Range Trading
This is a strategy for trading sideways or range-bound markets. These are markets that do not have a clearly defined trend and prices tend to oscillate between areas of support and resistance. The basic idea in a range-bound market is that there is a visible high where rising prices will face resistance and turn lower, and a visible low where prices will find support and turn higher. The strategy is, therefore, to look for buy trades when prices are near the support level and sell trades when prices are near the resistance level.
As mentioned earlier, support and resistance levels are zones and not specific price points. It is, therefore, important to identify the most optimal entry and exit points that will minimise risk and maximise profit potential. This can be achieved by combining support and resistance levels with other technical analysis indicators. To start with, the ADX indicator can be used to confirm that a market is indeed range-bound when the reading is below 25. Traders can then validate support and resistance signals using Oscillators, such as RSI and Stochastics; where they will sell when a market is overbought and buy when a market is oversold.
Breakout Trading
Support and resistance levels do not hold the price hostage. That means, they can be breached. Prices usually breakout after a prolonged period of consolidation, and this offers traders a great deal of opportunity. A breakout is usually the start of a new trend, which means traders have an opportunity to ride out an entire trend from its very beginning. When the price breaches a support line, it implies that a downtrend is now in place and traders should look to place sell orders; whereas a resistance line breach implies an uptrend is in place, and traders should look to place buy orders.
When trading this strategy, the danger is usually fake breakouts, where the price only breaches a support or resistance line for a short period or the price simply makes a spiky move and returns to previous conditions. To avoid this, it is important to validate a breakout using momentum indicators, such as ROC and MACD. A directional move will likely be sustained if the price breaches a support or resistance line with massive momentum i.e. it is a valid breakout. A fake breakout is one that happens with low momentum and should be avoided.
Which time frame is best for support and resistance levels?
What are the best tools and indicators for support and resistance trading?
How important are round numbers as support and resistance?
Short time stocks: These stocks can make huge profits in a short time, experts told the target price
Short time stocks: As the date of announcement of the Union Budget in India is getting closer, a lot of activity is being seen in the stock market of the country in which investors are facing problem in finding stocks that will give good profits after the budget. To solve this, domestic brokerage Reliance Securities has discussed the stocks giving good returns.
The domestic brokerage firm has recommended buying Larsen & Toubro Ltd, Tata Technologies Ltd, Devyani International Ltd, The Ramco Cements and ZEE Entertainment Enterprises Ltd. The company has also provided target price and entry price information for all these stocks. The brokerage firm says that these stocks are of special quality, due to which they may see a rise after the budget announcement.
Larsen & Toubro Ltd
Larsen & Toubro Ltd is a company involved in the infrastructure sector. The company is seen doing business in technology, engineering, construction and manufacturing in Kurukshetra. The market cap of the company is Rs 508,755 crore. The stock price of the company is Rs 3618.50. The 52-week minimum price of the stock is Rs 2,354.45 and the maximum price is Rs 3,919.90. The brokerage firm says that an entry price of Rs 3,550-3,648 is going to be good for buying the stock, while its target price can be kept at Rs 4,200.
Tata Technologies Ltd
Tata Technologies Ltd is seen focusing primarily on the automotive industry. The company’s biggest customers are Tata Motors and JLR. The stock price of this company with a market cap of Rs. 40,453 crore is Rs. 997.20. The 52-week low price of the stock is Rs. 500 and the high price is Rs. 1400. Reliance Securities has a buy recommendation on this stock with an entry price of Rs. 1,010-1,033 and a target price of Rs. 1230.
Devyani International Ltd
Devyani International Ltd is primarily seen developing, managing and operating restaurants and food courts of brands like Pizza Hut, KFC, Costa Coffee and Vaango. The company has many KFC and Pizza Hut stores in India as well as in Nigeria and Nepal. The company operates more than 490 KFC stores and 506 Pizza Hut stores in our country.
The share price of this company with a market cap of Rs 21,136 is Rs 175.22. The 52-week high price of the share is Rs 227.50.
The maximum price is Rs 142.25 and the minimum price is Rs 142.25. The firm has recommended an entry price of Rs 157-163 and a target price of Rs 195 for the company’s stock.
The Ramco Cements
Ramco Cements Limited is seen working in the field of cement, ready mix concrete and dry mortar products. The company produces 12 types of cement for different types of work. The company is currently engaged in meeting the requirements of the domestic cement market. The market cap of the company is Rs 18,379 crores. The stock price of the company is Rs 778. The 52-week minimum price of the stock is Rs 700 and the maximum price is Rs 1,058. The brokerage firm says that an entry price of Rs 775-794 is going to be good for buying the stock, while its target price can be kept at Rs 950.
ZEE Entertainment Enterprises Ltd
Entertainment Enterprises Limited is a media and entertainment company. The company has 48 channels for domestic broadcasting in the country and is present in more than 170 countries with 41 international channels. This company also has an over the top or OTT platform ZEE5. The share price of this company with a market cap of Rs 13,209 is Rs 138. The 52-week maximum price of the share is Rs 300 and the minimum price is Rs 126. The firm has advised to keep the entry price of the company’s stock at Rs 150-156 and the target price at Rs 190.
Disclaimer :- Stock Wallah vision is to promote financial literacy in India. The content posted by us is purely for educational purposes. We are not SEBI registered financial advisors. Hence we do not provide any investment or financial advisory services. Hence you will be fully responsible for your money and your decisions. Please consult a SEBI registered financial advisor for your financial investment! Also let me tell you that we do not give investment advice on any social media.
Top 5 Best Business Ideas to Start Your Own business In 2024
Many of us wonder how to select the top and best business ideas to start. While there are several businesses in Asia, choosing the best business to start is key to success. In this article, I would provide a list of the top 5 best businesses to Ideas start
1) Starting a School Books Publishing company:
Though it looks like starting a company, in reality, you would start a small business with low investment.
Education in Asia is every green field. You can start school books publishing company as low as Rs 50,000. You can start by publishing a few books and gradually grow year on year. You can employ key people for marketing your books.
Your target is mainly to sell such books to schools. However, your second option would be to sell them to large wholesale booksellers who can promote your products by getting good discounts from you. This is one of the best business ideas which is already established well now.
2) Start a fast-food restaurant:
You need a few thousand rupees to start a fast-food restaurant business. I feel this is the best business to start in Asia as Asians are food lovers and they get tempted with Chinese noodles and non-vegetarian kinds of food. The good part is you do not need any major investment to start this business in Asia.
3) Start a rental services agency:
The population is growing year on year in countries. Owning a house in a town or city is difficult. The majority depends on staying in a rented house.
Families move from one city to another city in search of employment or one part of the city to another part of the city due to various reasons. The rental agency plays a key role in identifying a house suitable within the budget for such individuals.
They charge some fees for providing such services. Rental services agency is becoming popular in metro cities in Asia. Starting a rental services agency and providing quality services can be a good profitable business.
4) Interior designing business:
These days many of us think to decorate hour with various items and have interior designing done with experts.
One of the ways to have a good and beautiful house is to take help from an interior designer. Starting an interior design business in Asia is the best business these days.
The business includes assessing the requirement of the customer and providing interior designing services at their home or office. Young entrepreneurs are aspiring to this as one of the best business ideas in Asia.
5) Office supplies:
There are several start-up companies starting day by day. They want to concentrate on their core business instead of worrying about day to day requirements of office supplies. Here office supply agency plays a key role.
They supply all computers, printers, stationery, etc. regularly. If you can open a supply of such office items, this could be a successful business for you. Having a good network of people can easily help you to promote your business.
The above top and best business to start in Asia are only some tips. Choose the business idea which is suitable for you.
Top 5 Natural Pain Killers and List of Natural Pain Relievers
Often we tend to forget that nature has all the answers to our problems. In our kitchens, we have a lot of items that have the potential of solving our health problems. In this pain relief article, let us find out the natural pain killers and natural pain relievers that work.
Natural Pain Killers that Work!
Can Beans Reduce Inflammation?
Yes, they can! Not many people are aware that beans have pain-fighting properties. They are a rich source of useful minerals, copper, manganese, and fiber. As well as diminishing muscles torment, beans likewise do some incredible things for decreasing by and large body torment if you consume them consistently as a piece of your eating regimen. On the off chance that your occupation includes proactive tasks, you should eat beans 3-4 times each week.
Ginger As a Natural Pain Reliever
This common herb is a powerhouse of health benefits. Eating ginger in sufficient quantity regularly will keep muscle pains at bay. Ginger is also a natural digestion-boosting herb. Either chew it regularly or crush a small piece and add to your regular tea. Its nutrients give you energy. You should make it a habit of chewing ginger daily if you are middle-aged. You’ll never suffer from knee pain and will also get other health benefits from ginger.
Carrot Juice for Knee Pain
Being a rich wellspring of beta carotene and Vitamin A, carrot is a surprisingly normal pain reliever that many individuals don’t know about. Supplements in carrots advance the development of new cells by supplanting harmed or powerless cells that could be the explanation of agony. Carrot juice has been viewed as exceptionally compelling in ousting poisons from the body. Smokers who quit smoking, are advised to drink carrot juice or to eat it raw to offset the effect of smoking faster than normal. Carrot also relieves pain effectively.
Pineapple As a Natural Painkiller
A rich source of Vitamin C, Magnesium, and Thiamine, Pineapple promises great results in terms of killing pain. Just make it a habit to eat a few pieces of pineapple every day during breakfast and see the results. You will not suffer from knee pain or whole-body pain as long as you maintain this habit.
In addition to consuming these natural pain killers, you should also make it a point to use various types of oils that are rich in Omega 3 fatty acids such as Salmon. It is a rich source of protein and is also very tasty. Many studies have proved that eating Omega 3 is as effective as consuming Ibuprofen, especially in the case of arthritis. Not only will they reduce pain but will also keep your overall health in perfect condition.
The Power of Effective Communication: Igniting Success through Masterful Managerial Communication
In this article, we delve into the power of effective communication and its crucial role in igniting success through masterful managerial communication. We’ll explore the impact of communication breakdowns in the workplace and provide actionable tips for building and maintaining a culture of effective communication. We will also discuss common barriers to effective communication and strategies for overcoming them. By the end of this article, you’ll have a clear understanding of the vital role communication plays in leadership and why mastering the art of communication is essential for creating a thriving and successful organization.
Introduction
The Importance of Effective Communication in Management
Effective communication plays a critical role in the success of any management endeavor. Good communication involves the exchange of information and ideas between individuals or groups. It leads to a shared understanding. In a business setting, effective communication means that everyone is on the same page, working towards common objectives. Poor communication can lead to costly mistakes, misunderstandings, conflicts and missed opportunities for growth.
Managers who are skilled at communicating well can inspire their team members to work together effectively and achieve outstanding results. Effective communication can also contribute to increased employee satisfaction and retention. In today’s fast-paced business environment, where collaboration is key to innovation and success, effective managerial communication is no longer an option but a necessity.
Understanding the Different Types of Communication
The ability to communicate effectively is an essential skill for successful managers, but it’s important to understand that communication can take many different forms. Verbal communication is the most commonly used type of communication in management, but nonverbal communication plays an equally important role. Nonverbal cues such as facial expressions, body language, and tone of voice can all convey important messages.In addition to verbal and nonverbal communication, there are also written and visual forms of communication that managers must master. Written communication includes emails, memos, reports, and other documents that are used to convey information or make decisions. Visual communication includes charts, graphs, diagrams, and other visual aids that can help clarify complex information.
Understanding the different types of communication is essential for effective managerial communication. By mastering each type of communication and knowing when to use each one effectively, managers can ensure that their messages are received clearly by employees and stakeholders alike.
The Four Components of Effective Communication
Effective communication is the heart of successful managerial communication. It involves four key components and that must be well-coordinated to ensure that the message is conveyed effectively and accurately. The first component is clarity, which refers to how well you can articulate your thoughts and ideas in a way that your audience can easily understand. It involves using clear language, avoiding jargon or technical terms, and breaking down complex ideas into simpler concepts.The second component is relevance, which refers to the extent to which your message resonates with your audience. You need to tailor your communication style to suit the needs, interests, and concerns of different individuals or groups. This means being sensitive to cultural differences, adjusting your tone based on the situation, and using appropriate nonverbal cues.
The third component is timeliness, which refers to when you deliver your message. Timing is essential in ensuring that you capture the attention of your audience and hold their interest throughout the conversation. Whether it’s in a meeting or via email, make sure you communicate when people are most receptive. Lastly, effectiveness requires consistency – ensuring that both verbal and nonverbal communication align with each other-
The Role of Active Listening in Communication
The Role of Active Listening in Communication Effective communication goes beyond just speaking clearly and articulately. In fact, active listening plays just as important a role in the communication process. Active listening refers to the practice of paying close attention to what someone is saying and responding appropriately.
This type of listening involves not just hearing words, but also understanding their meaning and context. It requires being fully present in the conversation, asking relevant questions, and providing feedback that demonstrates understanding.
By mastering active listening skills, managers can improve their ability to communicate effectively with employees, colleagues, and stakeholders. This can lead to greater collaboration, enhanced productivity, and a more positive work environment overall
Communicating Effectively with Employees, Colleagues, and Stakeholders
Effective communication is essential in creating strong relationships among employees, colleagues, and stakeholders. It requires active listening as well as openness to feedback. Managers must provide clarity in expectations and objectives to avoid misunderstandings that may lead to conflicts. They should also encourage open dialogue where team members can express their concerns.
In communicating with colleagues, it is important to establish rapport and mutual respect. A collaborative environment fosters creativity and productivity as team members bring in diverse perspectives towards solving problems. Managers must be able to communicate effectively with different personalities and work styles.
Stakeholder communication is perhaps the most crucial element of effective communication. It involves sharing information about the organization’s goals, progress, risks, and opportunities with investors, customers, suppliers, regulators or any other parties that are critical to its success. By communicating clearly with stakeholders about an organization’s activities and performance levels can lead to improved relationships which can ultimately translate into enhanced reputation and financial success for the organization.
Internet Marketing is Best Way to Get New Financial Sales Leads
No matter what kind of business you have, it will not thrive if you don’t have customers. You could be selling vacuum cleaners, cellular phones, or financial services, and you are going to need customers coming through your door that is willing to spend their money with you. Unfortunately, many people don’t know how to go about generating leads in the right way. There are several ways you can go about getting new financial leads although some of them work better than others. When you want to get the best results, use the tried and true methods of internet marketing like SEO and pay-per-click.
Attracting New Customers
If you were to open a brick-and-mortar store, you would look for ways to spread the word about your business. You would put up signs and maybe even a big billboard. You would probably take out a big ad in the paper so everyone in the area would know you are open and ready to do business. What about when your business is online? You can’t very well put up a billboard for that since your potential customers are all across the globe. You can do something much better. You can rely upon internet marketing methods like pay-per-click and SEO to draw customers to your business no matter where they live in the world.
Cold calling doesn’t work, it just makes people angry and you get more rejection than you get yeses. When you use SEO or Search Engine Optimization, you are causing your business’s webpage to reach the top of the most popular search engines. If they’re looking for your service or product, they will find you, open your site, and then you can use pay-per-click to generate sales.
Don’t waste your valuable time and money advertising to people who are not interested in what you are selling. Use internet marketing methods to attract customers to your online site so they are warmed up and more likely to buy when they read your sales pitch.
