Previous close works as support/Resistance level for price move ….If price is above the close price …then close price …plays the role of support level …if price moves below the previous close …then the level changes its role…means now it will play a role of roof /resistance to price move… as you can see in the chart and analyse yourself...
Can ask me for detailed material on pivot points , support/Resistance levels… with charts on the subject.
please read http://dhanvarshagrp.blogspot.com/2010/02/only-profits-no-loss.html for profit every day .
See here on 23 rd Feb close price again proved its role see here
See here too its role ...On 24 Feb 2010 too Nifty was not able to breach previous close price level once moved above in morning session and 10 attempts are there by bulls and bears to breach it but in vain and finally bears have proved that they are still in power …
Great ...on 25 Feb 2010 too close price level proved its role both as support and resistance level too..have a look at opening time ,down move was bounced by close price level but Bears tried again and breached the level at approx 9.15 AM and when bulls gathered and tried to cross the level but till then it's role was changed and .now it played role of resistance means roof and repelled Bulls on back foot.Later.. at approx 1,15 PM a perfect Inverted head and shoulder pattern was formed with doji candle which was a prominent trend reversal signal and I conveyed this message to all dhanvarsha members at the time of confirmation ...
dhanvarshagrp (2/25/2010 1:17:12 PM): superb Doji seen at 4840.00 now with double bottom and inverted h/s pattern on chart ...your views please ...????cmp 4842.00
and the result was upward breakout... It penetrated the major resistance level but the force was over and again reverted by the previous close price level at about 2.45 PM, so here it is an excellent example of role changing.
Today means on 16 Apr 2010 ... we again saw previous close price played an important role... of very strong Resistance level and 4 Bull attempts were discarded by this level ...please have a look ...
On 08 Sept 2010 ..once again I noticed play of last close as an idempotent crucial level ..please have a look ...
today on 16 Sep last close again played as an important support / resistance level .....
Nifty failed to cross last close in last hour of trade and basket selling sent it below 4550/- 28 months low
see its effect on 12 june 12
Triple bottom at last close and then upside move ...
very usefull ,history repeats ,this shown in graph for the learners by kailash ji ,great work ,in understanding ,supp and resistace, good ,keep going ,
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