Weak Support/ Resistance, Strong Support/ Resistance Concept

   

In the above chart “A” and “C” price levels are equal “E” is less than “C” and “G” is less than “E”

Here the level “A” emerged as Resistance because the “C” failed to break “A”. “D” breaks the b level and price down. So the level “A”,”C” became even more Stronger Resistance area.

Here level “D” considered as Weak Support the level “E” closed much lower than ‘A’ and ‘ C. So there is high probability that the price may ’break ‘D’ level. That,s why ‘D’ considered as weak Support.

The level ‘E’ also considered as strong Resistance because ‘F’ breaks previous price level and ‘G’ Closed lower than ‘E

‘F’’is weak support because ‘G’ failed to break ‘E’.or Price turned lower than ‘E’.

‘H’ and ’J’ are strong Support area Because ‘J’ failed to break ‘H’ and ‘K’ break ‘I’ and ‘L’ closed much above “H,J” Price level

Combine Trendline with Higher High Lower Low Pattern for identifing the clarity of the pattern.

In a rangebound market, the above concept has no importance

The concept of “Lower Low, Lower High” and “Higher high, Higher Low” are same as above Concept

Always keep in mind this concept while trading. Analyse chart using This concept for right entry.