Chart Reading : Lesson - 2 (Part : 1)

Usually, we most of the investors know - "Buy Low (Supply), Sell High (Demand)". In a chart, we call it - Buy at Support, Sell at Resistance. I don't like this policy. But as a chart reader we MUST know "Support and Resistance". Our Lesson - 2 will be regarding Support and Resistance. We will try to find the support and resistance zone in many ways by the several part of Lesson - 2.

Okay, Let's start. Please see the below chart :

I'm not going to give any definition of Support and Resistance. Our chart will say everything. Please keep in mind that (1) Price may not always bounce back from Support or Resistance. Support/Resistance has been created to break out or break down. (2) Support and resistance levels are sometimes not exact price levels. Say Price of XYZ share got a support at Tk. 10, 2nd time it got the support at Tk. 9. 90. So, we will say support zone is AROUND Tk. 10. by JC