Rajanji, don't support and resistance levels work because everyone is looking at them because everyone are taught that....?
These are not based on fundamentals or psychology.....I think.....they work because these are wide spread beliefs.....People believe in the channel theory, horizontal levels....which other than mass hysteria reasons is totally make believe working crap
There is a multi billion dollar consultancy, training, publishing, media, brokerage industry based on all this....
Otherwise, reason behind any level of any stock in the past cannot be the same months and years later.....what to talk of macro economy of the country and worldwide.....
It still works because sufficient people believe in this theory.....
Operators take advantage of it.....mercilessly, as per their convenience and necessity....
Newer and amateur traders are taught technicals to become unsuspecting victims.....
They play at technical level and get beaten on the tactical level...
That is why I believe that if someone trades like one plays video game he or she will make more money then with technicals....
A kid who doesn't know technicals can beat his technical father or mother hands down in trading.....in my opinion
Markets and market situations are always new.....and we play them with outdated reference points...
Reason why even the most sophisticated trading software can't guarantee profits without human intervention of high quality...
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