Markets Concepts for You

  Rally in Market- An asset value is affected by many factors. These factors include Earnings/Dividends declared, Change in Government policies, News, etc. Such factors combined together make the asset value move up or down.   There are situations when an asset continues to move in one direction which can be upward or downward. Such one sided movement is called Rally .   Examples- Upside Rally- When the asset price/candles continuously move upward. Downside Rally- When the asset price /candles continuously move down.

Breakout & Breakdown- An asset/share will move randomly or in manners forming definite shapes ( patterns ) or it will consolidate (trapped and move) in between Resistance and Support. When the asset breaks the Resistance line and moves upward, it’s said to have a Breakout(moves up). In the same manner, when the asset breaks the Support line and moves downward, it’s said to have a Breakdown(drops down) . Examples- In the examples above, it is seen that the candles on crossing the resistance line will give Breakout and when the candles cross the Support Line, it gives  Breakdown.                Note-This Breakout/Breakdown only works in combination with other various factors and proper knowledge which helps to take trades efficiently.