Support and Resistance – Intraday Scans
Support and resistance levels can help you to decide Entry, Exit and Stop loss. Support is a level at which the stock price will not fall further usually, and at that position, the stock price is expected to move in the opposite direction (trend reversal).
At the support level, the demand from buyers is more than sellers. Whereas resistance is a level at which the stock price will not rise any higher usually. At the resistance level, the demand from sellers is more than buyers. There are many tools used to find the resistance and support level in the stock market.
Features available in the support and resistance
In the support and resistance scan, you can find out the stocks support levels S1, S2, S3 for the day, and resistance levels, R1, R2, R3, for the day along with its symbol name, last price, Volume, OI, VWAP, ADX, RSI, 20 EMA, 100 SMA, 200 SMA.
|Symbol||It represents the stock symbol. If you click on the symbol you can find detailed technical information about the stocks.|
|Support Level (S1, S2, S3,)||Here you can find the level (support level) at which the stock price will not fall down further usually.|
|Resistance Level (R1, R2, R3,)||Here you can find the level (resistance level) at which the stock price will not rise any higher usually.|
|Option Chain||Get graphical summary of current option positions of the stock|
|ADX||Adx is a technical indicator that denotes the trend of a particular stock. If the value of ADX is less than 25 then it has a weak trend and if it is more than 25 then it has a strong trend. You can click on it to sort, low to high value or high to low value.|
|RSI||RSI which is the Relative Strength Index is also a technical indicator that denotes the condition of a particular stock. If the RSI is above 70 then it is considered as overbought and when it is below 30 then it is considered as oversold. You can click on it to sort, low to high value or high to low value..|
|VWAP||VWAP is Volume weighted average price, It considers the volume data in their calculation. If the share price is above VWAP, it denotes bullish movement. If the share price is below VWAP, it denotes the Bearish movement. It indicates the uptrend when the share price breakout the VWAP line and vice versa|
|20 EMA||It denotes the stock trend whether it is bullish or bearish compared with the previous 20 days. It acts as a dynamic support or resistance.|
|100 SMA||It denotes the stock trend whether it is bullish or bearish compared with the previous100 days. It acts as a dynamic support or resistance.|
|200 SMA||It denotes the stock trend whether it is bullish or bearish compared with the previous200 days. It acts as a dynamic support or resistance.|
|Volume||Volume refers to the total number of shares traded between its daily open and close time.|
|OI||Open Interest (OI) is a number that indicates how many futures or Options contracts are currently outstanding in the market.|
How to use support and resistance for trading, using Intraday Screener
- Firstly you have to go to the support and resistance scans in intraday screener
- After that you can select a stock through the support and resistance scans
- You have to identify the trend of the stock you selected, in daily timeframe
- The stock trend should be identical to the Nifty, for more accuracy in the trade.
- Mark the support levels and resistance levels of the stocks which you get from, using the intraday scanner
- Based on the Resistance levels (R1, R2, R3) and Support levels (S1, S2. S3) levels, you can take the action accordingly. (Be it a Buy or Sell Position)
- If the stock has broken its resistance level, it means you can buy the stock and if the stock has broken its support level, it means you can sell the stock.
- Near the support and resistances, trend could be reversed or continued, any time, so you have to be very careful while taking a trade, let the candle close properly above the resistance (for buy position) or below the support (for sell position) before taking any action.
How to use support and resistance in stock market
Calculating and picking the right stock using support and resistance indicators is an easy process. You can find a particular stock’s support levels (S1, S2, S3, S4) and resistance levels (R1, R2, R3, R4) on 5mins, 15 mins, 1 days time frame, and levels of Adx, Vwap, Rsi, 20 ema, 100sma, 200sma. According to the levels you can take positions. You can also apply filters and save them for reference.
Support and Resistance Levels – Example
Let us take an example of “Apollo Hospitals” stock in tradingview which shows the support levels(S1, S2, S3) and Resistance Levels(R1, R2, R3).