Trading Nifty Futures Using Support and Resistance Basic Rules

Before trading Nifty Future let’s get to basic about support resistance, now support is a technical level or key level, from where stock / market starts to bounce, hence we say stock took support. Resistance is also technical level from where stock starts to fall. These were simple definitions of support and resistance; let us discuss some facts about support resistance before we actually apply it in trading nifty future:
1. Whenever support level gets broken, it becomes resistance.
2. When price action breaks resistance level then same level now becomes support level.
3. Number of times the stock finds support/resistance, that level becomes much stronger.
Just using these three points a trader can make millions just trading nifty future, if previous resistance gets broken then it becomes new support level, now if stock corrects then one can aggressively buy around that support (previously resistance). So this type of trading is only possible if you know what support resistance is and facts about it. Even I have made thousands and thousands of money using support resistance principle not only in nifty future but also in stocks like Reliance, ICICI bank, Infosys, Crompton greaves, TCS, Wipro, ACC, Tata motors, DLF, Hindalco, IDFC, IDBI, Chambal Fertilizer, HDIL and many other F&O stocks. Lets us take an example of support resistance on Reliance stock, now on charts you can see stock took support near 900 level earlier, but on breaking below 900 level, that support level is now resistance level so at any point of reliance goes towards 900 level it will attract strong selling near 900 level. On chart you can see how strong selling came when reliance came towards 900 level. Simply taking reliance to 700 level, you can just imagine how much important these support and resistance levels are for trading.