How Do You Calculate Stop Loss , Resistance Price And Target Level Of Any Indian Stock ?
The idea behind a “stop loss” is to indicate when you should sell the shares. People tend to use either 5% or 10% as their stop loss markers. You calculate the stop loss when you buy the shaes, and increase it when the shares go up in value. If the share goes down, you DON’T change the stop loss point. Resistance happens when a share goes up in value. People see it as being too expensive to buy. If you look at the history of a share, you’ll see that it consistently reaches a level, and then drops back. That’s resistance in action. The other side of resistance is support. This is when a share goes down in value.People see it as a good buy, and the price tends to start going up again. Resistance and support tend to make an envelope; this is where prices tend to be for a share, somewhere between the the low support and the high resistance. So, if you can consistently buy shares at the support level, and sell at the resistance level, you make money. I guess this makes it an ideal target…
